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

As of today, Group 1 Automotive Inc's current share price is $77.56. Group 1 Automotive Inc's E10 for the quarter that ended in Jun. 2014 was $2.38. Group 1 Automotive Inc's Shiller P/E Ratio for today is 32.60.

GPI' s 10-Year Shiller P/E Ratio Range
Min: 2.24   Max: 36.7
Current: 32.6

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 16.45.

GPI's Shiller P/E Ratiois ranked higher than
78% of the 1288 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 63.62 vs. GPI: 32.60 )

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 Jun. 2014 was $0.619. 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 $2.38 for the trailing six years ended in Jun. 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
=77.56/2.38
=32.59

* 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 Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=0.62/238.343*238.064
=0.619

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

Current CPI = 238.064.

Group 1 Automotive Inc Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 0.9701.2001.3200.7370.8801.4301.1900.8421.1900.620
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 1.0071.2451.3580.7640.9001.4581.2100.8601.1990.619
200909200912201003201006201009201012201103201106201109201112
per share eps 0.780-0.0850.3400.5400.7900.4700.6401.0300.9100.946
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.860-0.0940.3720.5900.8610.5100.6821.0860.9550.998
200809200812200903200906
per share eps -0.910-2.6990.3700.430
CPI 218.783210.228212.709215.693
Adj_EPS -0.990-3.0560.4140.475

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 13.3712.5818.518.215.4017.0823.1325.4229.8330.81

Group 1 Automotive Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 27.4622.1628.8229.8328.2129.5235.1530.8127.4435.17
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