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Ulta Salon Cosmetics & Fragrances Inc (NAS:ULTA)
Shiller P/E Ratio
63.44 (As of Today)

As of today, Ulta Salon Cosmetics & Fragrances Inc's current share price is $133.86. Ulta Salon Cosmetics & Fragrances Inc's E10 for the quarter that ended in Oct. 2014 was $2.11. Ulta Salon Cosmetics & Fragrances Inc's Shiller P/E Ratio for today is 63.44.

ULTA' s 10-Year Shiller P/E Ratio Range
Min: 45.68   Max: 121.49
Current: 63.3

45.68
121.49

During the past 12 years, Ulta Salon Cosmetics & Fragrances Inc's highest Shiller P/E Ratio was 121.49. The lowest was 45.68. And the median was 82.64.

ULTA's Shiller P/E Ratiois ranked higher than
73% of the 1360 Companies
in the Global Specialty Retail industry.

( Industry Median: 54.44 vs. ULTA: 63.30 )

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.

Ulta Salon Cosmetics & Fragrances Inc's adjusted earnings per share data for the three months ended in Oct. 2014 was $0.901. 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 $2.11 for the trailing six years ended in Oct. 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.

Ulta Salon Cosmetics & Fragrances Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=133.86/2.11
=63.44

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

Ulta Salon Cosmetics & Fragrances Inc's E10 for the fiscal year that ended in Jan14 is calculated as:

For example, Ulta Salon Cosmetics & Fragrances Inc's adjusted earnings per share data for the three months ended in Oct. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2014*CPI of Current
=0.91/237.433*235.189
=0.901

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

Current CPI = 235.189.

Ulta Salon Cosmetics & Fragrances Inc Quarterly Data

201207201210201301201304201307201310201401201404201407201410
per share eps 0.5400.5900.9970.6500.7000.7001.0950.7700.9400.910
CPI 229.104231.317230.280232.531233.596233.546233.916237.072238.250237.433
Adj_EPS 0.5540.6001.0180.6570.7050.7051.1010.7640.9280.901
201001201004201007201010201101201104201107201110201201201204
per share eps 0.3390.2300.2200.2300.4780.3700.3800.4200.7250.540
CPI 216.687218.009218.011218.711220.223224.906225.922226.421226.665230.085
Adj_EPS 0.3680.2480.2370.2470.5100.3870.3960.4360.7520.552
200901200904200907200910
per share eps 0.2090.0800.1000.140
CPI 211.143213.240215.351216.177
Adj_EPS 0.2330.0880.1090.152

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.

Ulta Salon Cosmetics & Fragrances Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ShillerPE 0.000.000.000.000.000.0075.5398.8883.3150.37

Ulta Salon Cosmetics & Fragrances Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ShillerPE 92.1690.4983.3168.4370.7884.0550.3747.3747.5657.02
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