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Group 1 Automotive Inc (NYSE:GPI)
Shiller P/E Ratio
27.50 (As of Today)

As of today, Group 1 Automotive Inc's current share price is $63.12. Group 1 Automotive Inc's E10 for the quarter that ended in Dec. 2013 was $2.31. Group 1 Automotive Inc's Shiller P/E Ratio for today is 27.50.

GPI' s 10-Year Shiller P/E Ratio Range
Min: 2.24   Max: 36.45
Current: 27.5

2.24
36.45

During the past 13 years, Group 1 Automotive Inc's highest Shiller P/E Ratio was 36.45. The lowest was 2.24. And the median was 16.30.

GPI's Shiller P/E Ratiois ranked higher than
55% of the 516 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 20.03 vs. GPI: 27.50 )

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.

Group 1 Automotive Inc's adjusted earnings per share data for the three months ended in Dec. 2013 was $0.855. 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 $2.31 for the trailing six years ended in Dec. 2013.


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.

Group 1 Automotive Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=63.12/2.31
=27.32

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

Group 1 Automotive Inc's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Group 1 Automotive Inc's adjusted earnings per share data for the three months ended in Dec. 2013 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2013*CPI of Current
=0.842/233.049*236.511
=0.855

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 236.511.

Group 1 Automotive Inc Quarterly Data

201109201112201203201206201209201212201303201306201309201312
per share eps 0.9100.9460.9701.2001.3200.7370.8801.4301.1900.842
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 0.9490.9911.0001.2371.3490.7590.8941.4481.2020.855
200903200906200909200912201003201006201009201012201103201106
per share eps 0.3700.4300.780-0.0850.3400.5400.7900.4700.6401.030
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 0.4110.4720.854-0.0930.3690.5860.8550.5070.6771.079
200803200806200809200812
per share eps 0.7300.760-0.910-2.699
CPI 213.528218.815218.783210.228
Adj_EPS 0.8090.821-0.984-3.036

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.

Group 1 Automotive Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 13.3712.5718.478.275.3817.1523.0025.5129.7030.70

Group 1 Automotive Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ShillerPE 17.6125.5127.2922.0428.6929.7028.3529.4035.0130.70
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