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Family Dollar Stores Inc (NYSE:FDO)
Shiller P/E Ratio
25.50 (As of Today)

As of today, Family Dollar Stores Inc's current share price is $78.81. Family Dollar Stores Inc's E10 for the quarter that ended in Feb. 2015 was $3.09. Family Dollar Stores Inc's Shiller P/E Ratio for today is 25.50.

FDO' s 10-Year Shiller P/E Ratio Range
Min: 10.32   Max: 29.3
Current: 25.51

10.32
29.3

During the past 13 years, Family Dollar Stores Inc's highest Shiller P/E Ratio was 29.30. The lowest was 10.32. And the median was 21.46.

FDO's Shiller P/E Ratiois ranked lower than
56% of the 206 Companies
in the Global Discount Stores industry.

( Industry Median: 23.12 vs. FDO: 25.51 )

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.

Family Dollar Stores Inc's adjusted earnings per share data for the three months ended in Feb. 2015 was $0.676. 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 $3.09 for the trailing six years ended in Feb. 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.

Family Dollar Stores Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=78.81/3.09
=25.50

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

Family Dollar Stores Inc's E10 for the fiscal year that ended in Aug14 is calculated as:

For example, Family Dollar Stores Inc's adjusted earnings per share data for the three months ended in Feb. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Feb. 2015*CPI of Current
=0.67/234.722*236.959
=0.676

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

Current CPI = 236.959.

Family Dollar Stores Inc Quarterly Data

201211201302201305201308201311201402201405201408201411201502
per share eps 0.6901.2101.0500.8840.6800.8000.7100.3010.3600.670
CPI 230.221232.166232.945233.877233.069234.781237.900237.852236.151234.722
Adj_EPS 0.7101.2351.0680.8960.6910.8070.7070.3000.3610.676
201005201008201011201102201105201108201111201202201205201208
per share eps 0.7700.5550.5800.9800.9100.6630.6801.1501.0600.688
CPI 218.178218.312218.803221.309225.964226.545226.230227.663229.815230.379
Adj_EPS 0.8360.6020.6281.0490.9540.6930.7121.1971.0930.708
200905200908200911201002
per share eps 0.6200.4290.4900.810
CPI 213.856215.834216.330216.741
Adj_EPS 0.6870.4710.5370.886

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.

Family Dollar Stores Inc Annual Data

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
ShillerPE 14.6017.8319.2915.3018.1523.4124.5824.7224.0425.71

Family Dollar Stores Inc Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
ShillerPE 27.1721.0421.5724.0423.4321.4218.7725.7125.6125.52
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