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

As of today, Best Buy Co Inc's current share price is $31.66. Best Buy Co Inc's E10 for the quarter that ended in Jan. 2016 was $2.21. Best Buy Co Inc's Shiller P/E Ratio for today is 14.33.

BBY' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 5.65   Max: 53.81
Current: 14.3

5.65
53.81

During the past 13 years, Best Buy Co Inc's highest Shiller P/E Ratio was 53.81. The lowest was 5.65. And the median was 16.72.

BBY's Shiller P/E Ratio is ranked higher than
67% of the 233 Companies
in the Global Specialty Retail industry.

( Industry Median: 21.05 vs. BBY: 14.30 )

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 Jan. 2016 was $1.401. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.21 for the trailing ten years ended in Jan. 2016.


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
=31.66/2.21
=14.33

* 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 Jan16 is calculated as:

For example, Best Buy Co Inc's adjusted earnings per share data for the three months ended in Jan. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2016 (Change)*Current CPI (Jan. 2016)
=1.401/236.916*236.916
=1.401

Current CPI (Jan. 2016) = 236.916.

Best Buy Co Inc Quarterly Data

201310201401201404201407201410201501201504201507201510201601
per share eps 0.1600.8271.3100.4200.3001.4540.3600.4600.3601.401
CPI 233.546233.916237.072238.250237.433233.707236.599238.654237.838236.916
Adj_EPS 0.1620.8381.3090.4180.2991.4740.3600.4570.3591.401
201102201105201108201111201202201204201207201210201304201307
per share eps 1.6120.3500.4700.420-4.9090.4600.040-0.030-0.2400.770
CPI 221.309225.964226.545226.230227.663230.085229.104231.317232.531233.596
Adj_EPS 1.7260.3670.4920.440-5.1090.4740.041-0.031-0.2450.781
200808200811200902200905200908200911201002201005201008201011
per share eps 0.4800.1301.3460.3600.3700.5301.8130.3600.6000.540
CPI 219.086212.425212.193213.856215.834216.330216.741218.178218.312218.803
Adj_EPS 0.5190.1451.5030.3990.4060.5801.9820.3910.6510.585
200602200605200608200611200702200705200708200711200802200805
per share eps 1.2960.4700.4700.3101.5490.3900.5500.5301.7020.430
CPI 198.700202.500203.900201.500203.499207.949207.917210.177211.693216.632
Adj_EPS 1.5450.5500.5460.3641.8030.4440.6270.5971.9050.470

Add all the adjusted EPS together and divide 10 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

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Jan14Jan15Jan16
ShillerPE 44.8233.6924.7315.0416.7213.2512.4311.4516.2312.66

Best Buy Co Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
ShillerPE 21.5511.4512.3714.1016.2416.2316.4615.1616.6812.66
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