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

As of today, Pier 1 Imports Inc's current share price is $13.99. Pier 1 Imports Inc's E10 for the quarter that ended in Nov. 2014 was $0.95. Pier 1 Imports Inc's Shiller P/E Ratio for today is 14.73.

PIR' s 10-Year Shiller P/E Ratio Range
Min: 7.56   Max: 315.29
Current: 14.8

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 16.91.

PIR's Shiller P/E Ratiois ranked higher than
89% of the 1365 Companies
in the Global Home Improvement Stores industry.

( Industry Median: 49.07 vs. PIR: 14.80 )

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 Nov. 2014 was $0.198. 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 $0.95 for the trailing six years ended in Nov. 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
=13.99/0.95
=14.73

* 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 Nov. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Nov. 2014*CPI of Current
=0.2/236.151*233.808
=0.198

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

Current CPI = 233.808.

Pier 1 Imports Inc Quarterly Data

201208201211201302201305201308201311201402201405201408201411
per share eps 0.2400.2200.5740.1900.1700.2600.4090.1600.1000.200
CPI 230.379230.221232.166232.945233.877233.069234.781237.900237.852236.151
Adj_EPS 0.2440.2230.5780.1910.1700.2610.4070.1570.0980.198
201002201005201008201011201102201105201108201111201202201205
per share eps 0.2980.0700.1200.1800.4820.1200.1400.2101.0370.160
CPI 216.741218.178218.312218.803221.309225.964226.545226.230227.663229.815
Adj_EPS 0.3210.0750.1290.1920.5090.1240.1440.2171.0650.163
200902200905200908200911
per share eps -0.3290.320-0.1700.370
CPI 212.193213.856215.834216.330
Adj_EPS -0.3630.350-0.1840.400

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 16.8111.7122.74-77.48-0.36-8.65-14.064.2977.2828.32

Pier 1 Imports Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
ShillerPE 4.57284.4977.2852.1438.8235.4828.3222.6918.4414.58
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