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Investors Real Estate Trust (NYSE:IRET)
Shiller P/E Ratio
37.31 (As of Today)

As of today, Investors Real Estate Trust's current share price is $5.97. Investors Real Estate Trust's E10 for the quarter that ended in Jan. 2016 was $0.16. Investors Real Estate Trust's Shiller P/E Ratio for today is 37.31.

IRET' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 23.38   Max: 65.92
Current: 36.89

23.38
65.92

During the past 13 years, Investors Real Estate Trust's highest Shiller P/E Ratio was 65.92. The lowest was 23.38. And the median was 30.97.

IRET's Shiller P/E Ratio is ranked lower than
76% of the 178 Companies
in the Global REIT - Residential industry.

( Industry Median: 22.39 vs. IRET: 36.89 )

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.

Investors Real Estate Trust's adjusted earnings per share data for the three months ended in Jan. 2016 was $0.300. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.16 for the trailing ten years ended in Jan. 2016.


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.

Investors Real Estate Trust's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=5.97/0.16
=37.31

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

Investors Real Estate Trust's E10 for the fiscal year that ended in Apr15 is calculated as:

For example, Investors Real Estate Trust's adjusted earnings per share data for the three months ended in Jan. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2016 (Change)*Current CPI (Jan. 2016)
=0.3/236.916*236.916
=0.300

Current CPI (Jan. 2016) = 236.916.

Investors Real Estate Trust Quarterly Data

201310201401201404201407201410201501201504201507201510201601
per share eps 0.0600.000-0.291-0.0300.0200.0500.0570.0100.1100.300
CPI 233.546233.916237.072238.250237.433233.707236.599238.654237.838236.916
Adj_EPS 0.0610.000-0.291-0.0300.0200.0510.0570.0100.1100.300
201104201107201110201201201204201207201210201301201304201307
per share eps -0.0020.0100.0100.0200.0260.0100.0600.0300.0600.000
CPI 224.906225.922226.421226.665230.085229.104231.317230.280232.531233.596
Adj_EPS -0.0020.0100.0100.0210.0270.0100.0610.0310.0610.000
200810200901200904200907200910201001201004201007201010201101
per share eps 0.0300.0200.0210.0200.0000.0000.0070.0200.0700.140
CPI 216.573211.143213.240215.351216.177216.687218.009218.011218.711220.223
Adj_EPS 0.0330.0220.0230.0220.0000.0000.0080.0220.0760.151
200604200607200610200701200704200707200710200801200804200807
per share eps 0.1090.0500.0600.0600.0310.0500.0400.0400.0340.030
CPI 201.500203.500201.800202.416206.686208.299208.936211.080214.823219.964
Adj_EPS 0.1280.0580.0700.0700.0360.0570.0450.0450.0370.032

Add all the adjusted EPS together and divide 10 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.

Investors Real Estate Trust Annual Data

Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15
ShillerPE 0.0027.6727.2728.7329.4533.7330.4847.7554.7455.78

Investors Real Estate Trust Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
ShillerPE 44.130.0054.7461.1664.3765.7955.7856.2360.6540.28
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