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GuruFocus has detected 2 Warning Signs with Bed Bath & Beyond Inc $BBBY.
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Bed Bath & Beyond Inc (NAS:BBBY)
Shiller PE Ratio
7.54 (As of Today)

As of today, Bed Bath & Beyond Inc's current share price is $30.09. Bed Bath & Beyond Inc's E10 for the quarter that ended in May. 2017 was $3.99. Bed Bath & Beyond Inc's Shiller P/E Ratio for today is 7.54.

BBBY' s Shiller PE Ratio Range Over the Past 10 Years
Min: 7.43   Max: 39.93
Current: 7.54

7.43
39.93

During the past 13 years, Bed Bath & Beyond Inc's highest Shiller P/E Ratio was 39.93. The lowest was 7.43. And the median was 23.04.

BBBY's Shiller PE Ratio is ranked higher than
86% of the 257 Companies
in the Global Specialty Retail industry.

( Industry Median: 18.59 vs. BBBY: 7.54 )

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.

Bed Bath & Beyond Inc's adjusted earnings per share data for the three months ended in May. 2017 was $0.530. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $3.99 for the trailing ten years ended in May. 2017.


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.

Bed Bath & Beyond Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=30.09/3.99
=7.54

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Bed Bath & Beyond Inc's E10 for the fiscal year that ended in Feb17 is calculated as:

For example, Bed Bath & Beyond Inc's adjusted earnings per share data for the three months ended in May. 2017 was:

Adj_EPS=Earnigns per Share/CPI of May. 2017 (Change)*Current CPI (May. 2017)
=0.53/244.886*244.886
=0.530

Current CPI (May. 2017) = 244.886.

Bed Bath & Beyond Inc Quarterly Data

201502201505201508201511201602201605201608201611201702201705
per share eps 1.7600.9301.2101.0901.8800.8001.1100.8501.8200.530
CPI 234.722237.805238.316237.336237.111240.229240.849241.353243.603244.886
Adj_EPS 1.8360.9581.2431.1251.9420.8161.1290.8621.8300.530
201208201211201302201305201308201311201402201405201408201411
per share eps 0.9801.0301.6700.9301.1601.1201.5900.9301.1701.230
CPI 230.379230.221232.166232.945233.877233.069234.781237.900237.852236.151
Adj_EPS 1.0421.0961.7610.9781.2151.1771.6580.9571.2051.275
201002201005201008201011201102201105201108201111201202201205
per share eps 0.8600.5200.7000.7401.1200.7200.9300.9501.4600.890
CPI 216.741218.178218.312218.803221.309225.964226.545226.230227.663229.815
Adj_EPS 0.9720.5840.7850.8281.2390.7801.0051.0281.5700.948
200708200711200802200805200808200811200902200905200908200911
per share eps 0.5500.5200.6600.3000.4600.3400.5400.3400.5200.580
CPI 207.917210.177211.693216.632219.086212.425212.193213.856215.834216.330
Adj_EPS 0.6480.6060.7630.3390.5140.3920.6230.3890.5900.657

Add all the adjusted EPS together and divide 10 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 local exchange's currency.

Bed Bath & Beyond Inc Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
ShillerPE 21.0314.5524.8524.8225.9221.1822.2622.2913.1010.14

Bed Bath & Beyond Inc Quarterly Data

Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17May17
ShillerPE 22.2920.7717.7515.3413.1011.9812.2511.7610.148.62
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