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Tiffany & Co (NYSE:TIF)
Shiller P/E Ratio
30.04 (As of Today)

As of today, Tiffany & Co's current share price is $87.12. Tiffany & Co's E10 for the quarter that ended in Jan. 2015 was $2.90. Tiffany & Co's Shiller P/E Ratio for today is 30.04.

TIF' s 10-Year Shiller P/E Ratio Range
Min: 8.65   Max: 39.68
Current: 29.9

8.65
39.68

During the past 13 years, Tiffany & Co's highest Shiller P/E Ratio was 39.68. The lowest was 8.65. And the median was 24.25.

TIF's Shiller P/E Ratiois ranked higher than
75% of the 1620 Companies
in the Global Luxury Goods industry.

( Industry Median: 269.99 vs. TIF: 29.90 )

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.

Tiffany & Co's adjusted earnings per share data for the three months ended in Jan. 2015 was $1.529. 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 $2.90 for the trailing six years ended in Jan. 2015.


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.

Tiffany & Co's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=87.12/2.90
=30.04

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

Tiffany & Co's E10 for the fiscal year that ended in Jan15 is calculated as:

For example, Tiffany & Co's adjusted earnings per share data for the three months ended in Jan. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2015*CPI of Current
=1.509/233.707*236.818
=1.529

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

Current CPI = 236.818.

Tiffany & Co Quarterly Data

201210201301201304201307201310201401201404201407201410201501
per share eps 0.4901.4040.6500.8300.730-0.8080.9700.9600.2901.509
CPI 231.317230.280232.531233.596233.546233.916237.072238.250237.433233.707
Adj_EPS 0.5021.4440.6620.8410.740-0.8180.9690.9540.2891.529
201004201007201010201101201104201107201110201201201204201207
per share eps 0.5000.5300.4301.4070.6300.6900.7001.3900.6400.720
CPI 218.009218.011218.711220.223224.906225.922226.421226.665230.085229.104
Adj_EPS 0.5430.5760.4661.5130.6630.7230.7321.4520.6590.744
200904200907200910201001
per share eps 0.2000.4600.3501.103
CPI 213.240215.351216.177216.687
Adj_EPS 0.2220.5060.3831.205

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.

Tiffany & Co Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
ShillerPE 23.6322.8520.4710.4219.3426.1725.3123.9732.3929.89

Tiffany & Co Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ShillerPE 23.1823.9726.2627.4627.4832.3932.5335.6835.3429.89
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