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Bed Bath & Beyond Inc  (NAS:BBBY) E10: $4.04 (As of Aug. 2017)

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 Aug. 2017 was $0.670. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.04 for the trailing ten years ended in Aug. 2017.

As of today, Bed Bath & Beyond Inc's current stock price is $21.06. Bed Bath & Beyond Inc's E10 for the quarter that ended in Aug. 2017 was $4.04. Bed Bath & Beyond Inc's Shiller PE Ratio of today is 5.21.

During the past 13 years, the highest Shiller PE Ratio of Bed Bath & Beyond Inc was 39.93. The lowest was 4.84. And the median was 22.64.


Historical Data

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

* Premium members only.

Bed Bath & Beyond Inc Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.69 3.03 3.33 3.64 3.95

Bed Bath & Beyond Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.80 3.82 3.95 4.00 4.04

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today’s price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2017 (Change)*Current CPI (Aug. 2017)
=0.67/245.519*245.519
=0.670

Current CPI (Aug. 2017) = 245.519.

Bed Bath & Beyond Inc Quarterly Data

per share eps CPI Adj_EPS
200711 0.520 210.177 0.607
200802 0.660 211.693 0.765
200805 0.300 216.632 0.340
200808 0.460 219.086 0.515
200811 0.340 212.425 0.393
200902 0.540 212.193 0.625
200905 0.340 213.856 0.390
200908 0.520 215.834 0.592
200911 0.580 216.330 0.658
201002 0.860 216.741 0.974
201005 0.520 218.178 0.585
201008 0.700 218.312 0.787
201011 0.740 218.803 0.830
201102 1.120 221.309 1.243
201105 0.720 225.964 0.782
201108 0.930 226.545 1.008
201111 0.950 226.230 1.031
201202 1.460 227.663 1.575
201205 0.890 229.815 0.951
201208 0.980 230.379 1.044
201211 1.030 230.221 1.098
201302 1.670 232.166 1.766
201305 0.930 232.945 0.980
201308 1.160 233.877 1.218
201311 1.120 233.069 1.180
201402 1.590 234.781 1.663
201405 0.930 237.900 0.960
201408 1.170 237.852 1.208
201411 1.230 236.151 1.279
201502 1.760 234.722 1.841
201505 0.930 237.805 0.960
201508 1.210 238.316 1.247
201511 1.090 237.336 1.128
201602 1.880 237.111 1.947
201605 0.800 240.229 0.818
201608 1.110 240.849 1.132
201611 0.850 241.353 0.865
201702 1.820 243.603 1.834
201705 0.530 244.733 0.532
201708 0.670 245.519 0.670

Add all the adjusted EPS together and divide 10 will get our e10.


Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

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 of today is calculated as

Shiller PE Ratio=Share Price/E10
=21.06/4.04
=5.21

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

During the past 13 years, the highest Shiller P/E Ratio of Bed Bath & Beyond Inc was 39.93. The lowest was 4.84. And the median was 22.64.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Related Terms


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