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Pier 1 Imports, Inc. (NYSE:PIR)
Shiller P/E Ratio
28.10 (As of Today)

As of today, Pier 1 Imports, Inc.'s current share price is $17.84. Pier 1 Imports, Inc.'s E10 for the quarter that ended in Feb. 2014 was $0.00. Pier 1 Imports, Inc.'s Shiller P/E Ratio for today is 28.10.

PIR' s 10-Year Shiller P/E Ratio Range
Min: 7.56   Max: 315.29
Current: 28.1

7.56
315.29

During the past 13 years, Pier 1 Imports, Inc.'s highest Shiller P/E Ratio was 315.29. The lowest was 7.56. And the median was 20.11.

PIR's Shiller P/E Ratiois ranked lower than
56% of the 541 Companies
in the Global Home Improvement Stores industry.

( Industry Median: 21.42 vs. PIR: 28.10 )

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.

Pier 1 Imports, Inc.'s adjusted earnings per share data for the three months ended in Feb. 2014 was $0.412. 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 $0.00 for the trailing six years ended in Feb. 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.

Pier 1 Imports, Inc.'s Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=17.84/0.00
=

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

Pier 1 Imports, Inc.'s E10 for the fiscal year that ended in Feb14 is calculated as:

For example, Pier 1 Imports, Inc.'s adjusted earnings per share data for the three months ended in Feb. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Feb. 2014*CPI of Current
=0.409/234.781*236.511
=0.412

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

Current CPI = 236.511.

Pier 1 Imports, Inc. Quarterly Data

201111201202201205201208201211201302201305201308201311201402
per share eps 0.2101.0370.1600.2400.2200.5740.1900.1700.2600.409
CPI 226.230227.663229.815230.379230.221232.166232.945233.877233.069234.781
Adj_EPS 0.2201.0770.1650.2460.2260.5850.1930.1720.2640.412
200905200908200911201002201005201008201011201102201105201108
per share eps 0.320-0.1700.3700.2980.0700.1200.1800.4820.1200.140
CPI 213.856215.834216.330216.741218.178218.312218.803221.309225.964226.545
Adj_EPS 0.354-0.1860.4050.3250.0760.1300.1950.5150.1260.146
200805200808200811200902
per share eps -0.370-0.340-0.410-0.329
CPI 216.632219.086212.425212.193
Adj_EPS -0.404-0.367-0.456-0.367

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.

Pier 1 Imports, Inc. Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
ShillerPE 16.8011.7122.86-77.48-0.36-8.65-14.064.2977.550.00

Pier 1 Imports, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
ShillerPE -23.154.294.034.57287.9877.5552.6338.7635.420.00
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