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Best Buy Co Inc (NYSE:BBY)
Shiller P/E Ratio
27.55 (As of Today)

As of today, Best Buy Co Inc's current share price is $39.39. Best Buy Co Inc's E10 for the quarter that ended in Oct. 2014 was $1.43. Best Buy Co Inc's Shiller P/E Ratio for today is 27.55.

BBY' s 10-Year Shiller P/E Ratio Range
Min: 6.07   Max: 40.31
Current: 27.5

6.07
40.31

During the past 13 years, Best Buy Co Inc's highest Shiller P/E Ratio was 40.31. The lowest was 6.07. And the median was 18.46.

BBY's Shiller P/E Ratiois ranked higher than
80% of the 1353 Companies
in the Global Specialty Retail industry.

( Industry Median: 50.31 vs. BBY: 27.50 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Best Buy Co Inc's adjusted earnings per share data for the three months ended in Oct. 2014 was $0.298. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $1.43 for the trailing six years ended in Oct. 2014.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Best Buy Co Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=39.39/1.43
=27.55

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Best Buy Co Inc's E10 for the fiscal year that ended in Jan14 is calculated as:

For example, Best Buy Co Inc's adjusted earnings per share data for the three months ended in Oct. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2014*CPI of Current
=0.3/237.433*235.51
=0.298

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 235.51.

Best Buy Co Inc Quarterly Data

201204201207201210201304201307201310201401201404201407201410
per share eps 0.4600.040-0.030-0.2400.7700.1600.8271.3100.4200.300
CPI 230.085229.104231.317232.531233.596233.546233.916237.072238.250237.433
Adj_EPS 0.4710.041-0.031-0.2430.7760.1610.8331.3010.4150.298
200911201002201005201008201011201102201105201108201111201202
per share eps 0.5301.8130.3600.6000.5401.6120.3500.4700.420-4.909
CPI 216.330216.741218.178218.312218.803221.309225.964226.545226.230227.663
Adj_EPS 0.5771.9700.3890.6470.5811.7150.3650.4890.437-5.078
200811200902200905200908
per share eps 0.1301.3460.3600.370
CPI 212.425212.193213.856215.834
Adj_EPS 0.1441.4940.3960.404

Add all the adjusted EPS together and divide 6 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Best Buy Co Inc Annual Data

Feb04Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Jan14
ShillerPE 36.6729.3735.3824.8719.1011.7613.3010.8912.3815.12

Best Buy Co Inc Quarterly Data

Apr12Jul12Oct12Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ShillerPE 11.029.518.2016.9018.8928.2115.1217.4121.0823.50
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