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GuruFocus has detected 5 Warning Signs with Forest City Realty Trust Inc $FCE.B.
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Forest City Realty Trust Inc (NYSE:FCE.B)
Shiller PE Ratio
979.67 (As of Today)

As of today, Forest City Realty Trust Inc's current share price is $29.39. Forest City Realty Trust Inc's E10 for the quarter that ended in Dec. 2016 was $0.03. Forest City Realty Trust Inc's Shiller P/E Ratio for today is 979.67.

FCE.B' s Shiller PE Ratio Range Over the Past 10 Years
Min: 5.05   Max: 1327.14
Current: 1311.52

5.05
1327.14

During the past 13 years, Forest City Realty Trust Inc's highest Shiller P/E Ratio was 1327.14. The lowest was 5.05. And the median was 61.52.

FCE.B's Shiller PE Ratio is ranked lower than
99% of the 198 Companies
in the Global REIT - Retail industry.

( Industry Median: 24.18 vs. FCE.B: 1311.52 )

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.

Forest City Realty Trust Inc's adjusted earnings per share data for the three months ended in Dec. 2016 was $0.010. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.03 for the trailing ten years ended in Dec. 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.

Forest City Realty Trust Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=29.39/0.03
=979.67

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

Forest City Realty Trust Inc's E10 for the fiscal year that ended in Dec16 is calculated as:

For example, Forest City Realty Trust Inc's adjusted earnings per share data for the three months ended in Dec. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2016 (Change)*Current CPI (Dec. 2016)
=0.01/241.432*241.432
=0.010

Current CPI (Dec. 2016) = 241.432.

Forest City Realty Trust Inc Quarterly Data

201409201412201503201506201509201512201603201606201609201612
per share eps 0.0030.350-0.2701.180-1.1802.2000.9200.100-1.6700.010
CPI 238.031234.812236.119238.638237.945236.525238.132241.018241.428241.432
Adj_EPS 0.0030.360-0.2761.194-1.1972.2460.9330.100-1.6700.010
201204201207201210201301201303201304201307201310201403201406
per share eps 0.110-0.280-0.1100.290-0.110-0.110-0.0800.6700.080-0.470
CPI 230.085229.104231.317230.280232.773232.531233.596233.546236.293238.343
Adj_EPS 0.115-0.295-0.1150.304-0.114-0.114-0.0830.6930.082-0.476
200910201001201004201007201010201101201104201107201110201201
per share eps -0.0300.050-0.1000.620-0.330-0.0400.2300.030-0.240-0.650
CPI 216.177216.687218.009218.011218.711220.223224.906225.922226.421226.665
Adj_EPS -0.0340.056-0.1110.687-0.364-0.0440.2470.032-0.256-0.692
200704200707200710200801200804200807200810200901200904200907
per share eps -0.1700.630-0.1100.130-0.390-0.080-0.190-0.440-0.300-0.010
CPI 206.686208.299208.936211.080214.823219.964216.573211.143213.240215.351
Adj_EPS -0.1990.730-0.1270.149-0.438-0.088-0.212-0.503-0.340-0.011

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 local exchange's currency.

Forest City Realty Trust Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Dec14Dec15Dec16
ShillerPE 72.6345.189.6517.9031.8737.2856.84117.3779.361,197.08

Forest City Realty Trust Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ShillerPE 126.31117.37197.0298.53227.2279.3668.6470.82245.761,197.08
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