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

As of today, Group 1 Automotive Inc's current share price is $87.47. Group 1 Automotive Inc's E10 for the quarter that ended in Sep. 2014 was $2.69. Group 1 Automotive Inc's Shiller P/E Ratio for today is 32.52.

GPI' s 10-Year Shiller P/E Ratio Range
Min: 2.23   Max: 36.54
Current: 32.49

2.23
36.54

During the past 13 years, Group 1 Automotive Inc's highest Shiller P/E Ratio was 36.54. The lowest was 2.23. And the median was 17.28.

GPI's Shiller P/E Ratiois ranked higher than
76% of the 1427 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 43.67 vs. GPI: 32.49 )

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 Sep. 2014 was $1.019. 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 $2.69 for the trailing six years ended in Sep. 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
=87.47/2.69
=32.52

* 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 Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=1.03/238.031*235.51
=1.019

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

Current CPI = 235.51.

Group 1 Automotive Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 1.2001.3200.7370.8801.4301.1900.8421.1900.6201.030
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 1.2321.3430.7560.8901.4421.1970.8511.1860.6131.019
200912201003201006201009201012201103201106201109201112201203
per share eps -0.0850.3400.5400.7900.4700.6401.0300.9100.9460.970
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS -0.0930.3680.5830.8520.5050.6741.0750.9450.9870.996
200812200903200906200909
per share eps -2.6990.3700.4300.780
CPI 210.228212.709215.693215.969
Adj_EPS -3.0240.4100.4700.851

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 13.4212.6218.568.235.4117.0922.9325.4329.8530.83

Group 1 Automotive Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 22.1728.8429.8528.2329.5435.1730.8327.4635.1927.32
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