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Ares Commercial Real Estate (Ares Commercial Real Estate) E10 : $1.13 (As of Dec. 2023)


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What is Ares Commercial Real Estate E10?

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.

Ares Commercial Real Estate's adjusted earnings per share data for the three months ended in Dec. 2023 was $-0.730. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.13 for the trailing ten years ended in Dec. 2023.

During the past 12 months, Ares Commercial Real Estate's average E10 Growth Rate was -9.60% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

As of today (2024-05-04), Ares Commercial Real Estate's current stock price is $6.92. Ares Commercial Real Estate's E10 for the quarter that ended in Dec. 2023 was $1.13. Ares Commercial Real Estate's Shiller PE Ratio of today is 6.12.

During the past 13 years, the highest Shiller PE Ratio of Ares Commercial Real Estate was 13.65. The lowest was 5.81. And the median was 8.72.


Ares Commercial Real Estate E10 Historical Data

The historical data trend for Ares Commercial Real Estate's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ares Commercial Real Estate E10 Chart

Ares Commercial Real Estate Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 1.13 1.25 1.13

Ares Commercial Real Estate Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
E10 Get a 7-Day Free Trial 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 1.25 1.26 1.23 1.22 1.13

Competitive Comparison of Ares Commercial Real Estate's E10

For the REIT - Mortgage subindustry, Ares Commercial Real Estate's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


Ares Commercial Real Estate's Shiller PE Ratio Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Ares Commercial Real Estate's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Ares Commercial Real Estate's Shiller PE Ratio falls into.



Ares Commercial Real Estate E10 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.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Ares Commercial Real Estate's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=-0.73/129.4194*129.4194
=-0.730

Current CPI (Dec. 2023) = 129.4194.

Ares Commercial Real Estate Quarterly Data

per share eps CPI Adj_EPS
201403 0.170 99.695 0.221
201406 0.230 100.560 0.296
201409 0.140 100.428 0.180
201412 0.310 99.070 0.405
201503 0.250 99.621 0.325
201506 0.310 100.684 0.398
201509 0.330 100.392 0.425
201512 0.310 99.792 0.402
201603 0.180 100.470 0.232
201606 0.310 101.688 0.395
201609 0.650 101.861 0.826
201612 0.280 101.863 0.356
201703 0.230 102.862 0.289
201706 0.240 103.349 0.301
201709 0.390 104.136 0.485
201712 0.220 104.011 0.274
201803 0.330 105.290 0.406
201806 0.330 106.317 0.402
201809 0.350 106.507 0.425
201812 0.350 105.998 0.427
201903 0.300 107.251 0.362
201906 0.340 108.070 0.407
201909 0.310 108.329 0.370
201912 0.330 108.420 0.394
202003 -0.540 108.902 -0.642
202006 0.290 108.767 0.345
202009 0.440 109.815 0.519
202012 0.430 109.897 0.506
202103 0.450 111.754 0.521
202106 0.430 114.631 0.485
202109 0.210 115.734 0.235
202112 0.360 117.630 0.396
202203 0.340 121.301 0.363
202206 0.200 125.017 0.207
202209 0.010 125.227 0.010
202212 0.050 125.222 0.052
202303 -0.120 127.348 -0.122
202306 -0.040 128.729 -0.040
202309 0.170 129.860 0.169
202312 -0.730 129.419 -0.730

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


Ares Commercial Real Estate  (NYSE:ACRE) 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.

Ares Commercial Real Estate's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=6.92/1.13
=6.12

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Shiller P/E Ratio of Ares Commercial Real Estate was 13.65. The lowest was 5.81. And the median was 8.72.


Be Aware

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


Ares Commercial Real Estate E10 Related Terms

Thank you for viewing the detailed overview of Ares Commercial Real Estate's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Ares Commercial Real Estate (Ares Commercial Real Estate) Business Description

Traded in Other Exchanges
Address
245 Park Avenue, 42nd Floor, New York, NY, USA, 10167
Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments. The company operates in one segment namely originating and managing a diversified portfolio of CRE debt-related investments. The group recognizes its revenues through the interest income it receives from loans.
Executives
Bryan Patrick Donohoe officer: Chief Executive Officer C/O ARES COMMERCIAL REAL ESTATE CORP., 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
Anton Feingold officer: General Counsel VP & Secretary C/O CION ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
William Stephen Benjamin director C/O ARES COMMERCIAL REAL ESTATE CORP., 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
Rebecca Jaisali Parekh director C/O ARES COMMERCIAL REAL ESTATE, 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
Michael J Arougheti director 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
James Alan Henderson officer: President and CIO C/O ARES COMMERCIAL REAL ESTATE CORP., 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
David A Roth officer: President C/O THE BLACKSTONE GROUP, 345 PARK AVE., NEW YORK NY 10154
Rand Scott April director C/O ARES COMMERCIAL REAL ESTATE MGMT, 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
Moriarty Edmond N. Iii director C/O ARES COMMERCIAL REAL ESTATE CORP., 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
Kirk Sykes director C/O ARES COMMERCIAL REAL ESTATE CORP., 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
Robert L Rosen director 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
James E Skinner director NEIMAN MARCUS GROUP, 1618 MAIN ST, DALLAS TX 75201
Caroline Blakely director ONE NORTH WACKER DRIVE 48TH FL, CHICAGO IL 60606
John Jardine director, officer: Co-Chief Executive Officer C/O ARES COMMERCIAL REAL ESTATE CORP., ONE NORTH WACKER DRIVE, 48TH FLOOR, CHICAGO IL 60606
Todd Schuster director C/O TPG RE FINANCE TRUST, INC., 888 SEVENTH AVENUE, 35TH FLOOR, NEW YORK NY 10106

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