Switch to:
GuruFocus has detected 3 Warning Signs with Cato Corp $CATO.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Cato Corp (NYSE:CATO)
Shiller P/E Ratio
13.16 (As of Today)

As of today, Cato Corp's current share price is $26.58. Cato Corp's E10 for the quarter that ended in Oct. 2016 was $2.02. Cato Corp's Shiller P/E Ratio for today is 13.16.

CATO' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 9.29   Max: 24.45
Current: 13.15


During the past 13 years, Cato Corp's highest Shiller P/E Ratio was 24.45. The lowest was 9.29. And the median was 16.81.

CATO's Shiller P/E Ratio is ranked higher than
70% of the 247 Companies
in the Global Apparel Stores industry.

( Industry Median: 21.22 vs. CATO: 13.15 )

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.

Cato Corp's adjusted earnings per share data for the three months ended in Oct. 2016 was $0.300. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.02 for the trailing ten years ended in Oct. 2016.


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.

Cato Corp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Cato Corp's E10 for the fiscal year that ended in Jan16 is calculated as:

For example, Cato Corp's adjusted earnings per share data for the three months ended in Oct. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2016 (Change)*Current CPI (Oct. 2016)

Current CPI (Oct. 2016) = 241.729.

Cato Corp Quarterly Data

per share eps 0.5600.2000.3301.1100.5600.3000.4201.2900.5700.300
CPI 238.250237.433233.707236.599238.654237.838236.916239.261240.628241.729
Adj_EPS 0.5680.2040.3411.1340.5670.3050.4291.3030.5730.300
per share eps 0.3501.0900.5900.1600.2701.0500.5100.1700.1301.040
CPI 226.665230.085229.104231.317230.280232.531233.596233.546233.916237.072
Adj_EPS 0.3731.1450.6230.1670.2831.0920.5280.1760.1341.060
per share eps 0.5600.1000.2400.8500.5800.2000.3801.0400.6100.210
CPI 215.351216.177216.687218.009218.011218.711220.223224.906225.922226.421
Adj_EPS 0.6290.1120.2680.9420.6430.2210.4171.1180.6530.224
per share eps 0.4000.5900.3900.090-0.0500.5800.4100.0300.1300.640
CPI 202.416206.686208.299208.936211.080214.823219.964216.573211.143213.240
Adj_EPS 0.4780.6900.4530.104-0.0570.6530.4510.0330.1490.726

Add all the adjusted EPS together and divide 10 will get our E10.


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 local exchange's currency.

Cato Corp Annual Data

ShillerPE 20.0913.3810.4815.2217.1017.3116.8015.9723.2621.14

Cato Corp Quarterly Data

ShillerPE 16.7219.3923.2620.9120.0719.7721.1418.5017.8014.70
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)