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

As of today, Group 1 Automotive Inc's current share price is $86.54. Group 1 Automotive Inc's E10 for the quarter that ended in Dec. 2014 was $3.31. Group 1 Automotive Inc's Shiller P/E Ratio for today is 26.15.

GPI' s 10-Year Shiller P/E Ratio Range
Min: 2.24   Max: 36.7
Current: 26.17

2.24
36.7

During the past 13 years, Group 1 Automotive Inc's highest Shiller P/E Ratio was 36.70. The lowest was 2.24. And the median was 17.89.

GPI's Shiller P/E Ratiois ranked higher than
84% of the 1935 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 0.00 vs. GPI: 26.17 )

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. 2014 was $0.803. 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 $3.31 for the trailing six years ended in Dec. 2014.


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
=86.54/3.31
=26.15

* 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 Dec14 is calculated as:

For example, Group 1 Automotive Inc's adjusted earnings per share data for the three months ended in Dec. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=0.796/234.812*236.818
=0.803

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

Current CPI = 236.818.

Group 1 Automotive Inc Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 1.3200.7370.8801.4301.1900.8421.1900.6201.0300.796
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 1.3510.7600.8951.4501.2040.8561.1930.6161.0250.803
201003201006201009201012201103201106201109201112201203201206
per share eps 0.3400.5400.7900.4700.6401.0300.9100.9460.9701.200
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 0.3700.5870.8560.5080.6781.0810.9500.9931.0011.238
200903200906200909200912
per share eps 0.3700.4300.780-0.085
CPI 212.709215.693215.969215.949
Adj_EPS 0.4120.4720.855-0.093

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 12.5618.458.255.4317.1523.0125.5129.7331.0227.10

Group 1 Automotive Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 28.7229.7328.3729.4235.0631.0227.3835.3126.6927.10
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