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

As of today, Best Buy Co Inc's current share price is $34.22. Best Buy Co Inc's E10 for the quarter that ended in Jan. 2015 was $1.66. Best Buy Co Inc's Shiller P/E Ratio for today is 20.61.

BBY' s 10-Year Shiller P/E Ratio Range
Min: 6.1   Max: 40.31
Current: 20.9

6.1
40.31

During the past 13 years, Best Buy Co Inc's highest Shiller P/E Ratio was 40.31. The lowest was 6.10. And the median was 18.62.

BBY's Shiller P/E Ratiois ranked higher than
57% of the 655 Companies
in the Global Specialty Retail industry.

( Industry Median: 23.80 vs. BBY: 20.90 )

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. 2015 was $1.476. 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 $1.66 for the trailing six years ended in Jan. 2015.


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
=34.22/1.66
=20.61

* 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 Jan15 is calculated as:

For example, Best Buy Co Inc's adjusted earnings per share data for the three months ended in Jan. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2015*CPI of Current
=1.454/233.707*237.167
=1.476

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

Current CPI = 237.167.

Best Buy Co Inc Quarterly Data

201207201210201304201307201310201401201404201407201410201501
per share eps 0.040-0.030-0.2400.7700.1600.8271.3100.4200.3001.454
CPI 229.104231.317232.531233.596233.546233.916237.072238.250237.433233.707
Adj_EPS 0.041-0.031-0.2450.7820.1620.8381.3110.4180.3001.476
201002201005201008201011201102201105201108201111201202201204
per share eps 1.8130.3600.6000.5401.6120.3500.4700.420-4.9090.460
CPI 216.741218.178218.312218.803221.309225.964226.545226.230227.663230.085
Adj_EPS 1.9840.3910.6520.5851.7280.3670.4920.440-5.1140.474
200902200905200908200911
per share eps 1.3460.3600.3700.530
CPI 212.193213.856215.834216.330
Adj_EPS 1.5040.3990.4070.581

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

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Jan14Jan15
ShillerPE 29.4035.1624.9319.1411.7813.2110.9212.4215.0421.26

Best Buy Co Inc Quarterly Data

Jul12Oct12Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ShillerPE 9.548.2216.9718.9628.3215.0417.5020.1723.7521.26
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