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GuruFocus has detected 6 Warning Signs with Pier 1 Imports Inc $PIR.
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Pier 1 Imports Inc (NYSE:PIR)
Shiller PE Ratio
11.46 (As of Today)

As of today, Pier 1 Imports Inc's current share price is $5.27. Pier 1 Imports Inc's E10 for the quarter that ended in Feb. 2017 was $0.46. Pier 1 Imports Inc's Shiller P/E Ratio for today is 11.46.

PIR' s Shiller PE Ratio Range Over the Past 10 Years
Min: 0.73   Max: 1970
Current: 11.23

0.73
1970

During the past 13 years, Pier 1 Imports Inc's highest Shiller P/E Ratio was 1970.00. The lowest was 0.73. And the median was 57.18.

PIR's Shiller PE Ratio is ranked higher than
51% of the 243 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.72 vs. PIR: 11.23 )

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 Feb. 2017 was $0.330. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.46 for the trailing ten years ended in Feb. 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.

Pier 1 Imports Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=5.27/0.46
=11.46

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

Pier 1 Imports Inc's E10 for the fiscal year that ended in Feb17 is calculated as:

For example, Pier 1 Imports Inc's adjusted earnings per share data for the three months ended in Feb. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Feb. 2017 (Change)*Current CPI (Feb. 2017)
=0.33/243.603*243.603
=0.330

Current CPI (Feb. 2017) = 243.603.

Pier 1 Imports Inc Quarterly Data

201411201502201505201508201511201602201605201608201611201702
per share eps 0.2000.3700.0800.0400.1300.220-0.070-0.0500.1700.330
CPI 236.151234.722237.805238.316237.336237.111240.229240.849241.353243.603
Adj_EPS 0.2060.3840.0820.0410.1330.226-0.071-0.0510.1720.330
201205201208201211201302201305201308201311201402201405201408
per share eps 0.1600.2400.2200.5800.1900.1700.2600.4000.1600.100
CPI 229.815230.379230.221232.166232.945233.877233.069234.781237.900237.852
Adj_EPS 0.1700.2540.2330.6090.1990.1770.2720.4150.1640.102
200911201002201005201008201011201102201105201108201111201202
per share eps 0.3700.3100.0700.1200.1800.4800.1200.1400.2101.010
CPI 216.330216.741218.178218.312218.803221.309225.964226.545226.230227.663
Adj_EPS 0.4170.3480.0780.1340.2000.5280.1290.1510.2261.081
200705200708200711200802200805200808200811200902200905200908
per share eps -0.640-0.490-0.1100.160-0.370-0.340-0.410-0.3300.320-0.170
CPI 207.949207.917210.177211.693216.632219.086212.425212.193213.856215.834
Adj_EPS -0.750-0.574-0.1270.184-0.416-0.378-0.470-0.3790.365-0.192

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.

Pier 1 Imports Inc Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
ShillerPE 13.501.4445.29100.12145.00334.043,340.712,685.7446.1614.59

Pier 1 Imports Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
ShillerPE 0.002,685.74428.52209.7395.6246.1642.0720.1116.0214.59
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