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

As of today, Tiffany & Co's current share price is $99.86. Tiffany & Co's E10 for the quarter that ended in Jul. 2014 was $2.74. Tiffany & Co's Shiller P/E Ratio for today is 36.50.

TIF' s 10-Year Shiller P/E Ratio Range
Min: 8.69   Max: 42.75
Current: 36.5

8.69
42.75

During the past 13 years, Tiffany & Co's highest Shiller P/E Ratio was 42.75. The lowest was 8.69. And the median was 24.27.

TIF's Shiller P/E Ratiois ranked higher than
75% of the 1199 Companies
in the Global Luxury Goods industry.

( Industry Median: 45.86 vs. TIF: 36.50 )

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 Jul. 2014 was $0.959. 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 $2.74 for the trailing six years ended in Jul. 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.

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

Shiller P/E Ratio=Share Price/E10
=99.86/2.74
=36.45

* 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 Jan14 is calculated as:

For example, Tiffany & Co's adjusted earnings per share data for the three months ended in Jul. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jul. 2014*CPI of Current
=0.96/238.25*238.064
=0.959

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

Current CPI = 238.064.

Tiffany & Co Quarterly Data

201204201207201210201301201304201307201310201401201404201407
per share eps 0.6400.7200.4901.4040.6500.8300.730-0.8080.9700.960
CPI 230.085229.104231.317230.280232.531233.596233.546233.916237.072238.250
Adj_EPS 0.6620.7480.5041.4510.6650.8460.744-0.8220.9740.959
200910201001201004201007201010201101201104201107201110201201
per share eps 0.3501.1030.5000.5300.4301.4070.6300.6900.7001.390
CPI 216.177216.687218.009218.011218.711220.223224.906225.922226.421226.665
Adj_EPS 0.3851.2120.5460.5790.4681.5210.6670.7270.7361.460
200810200901200904200907
per share eps 0.3500.2500.2000.460
CPI 216.573211.143213.240215.351
Adj_EPS 0.3850.2820.2230.509

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

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ShillerPE 21.8023.5422.9620.4110.4819.2926.1425.2923.9732.38

Tiffany & Co Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
ShillerPE 26.1120.6423.1623.9726.2627.4627.4832.3832.5336.43
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