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Forest City Realty Trust Inc (NYSE:FCE.A)
E10
$0.08 (As of Sep. 2015)

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.

Forest City Realty Trust Inc's adjusted earnings per share data for the three months ended in Sep. 2015 was $-1.180. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.08 for the trailing ten years ended in Sep. 2015.

As of today, Forest City Realty Trust Inc's current stock price is $23.63. Forest City Realty Trust Inc's E10 for the quarter that ended in Sep. 2015 was $0.08. Forest City Realty Trust Inc's Shiller P/E Ratio of today is 295.38.


Definition

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, Forest City Realty Trust Inc's adjusted earnings per share data for the three months ended in Sep. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=-1.18/237.945*237.945
=-1.180

Current CPI (Sep. 2015) = 237.945.

Forest City Realty Trust Inc Quarterly Data

201304201307201310201403201406201409201412201503201506201509
per share eps -0.110-0.0800.6700.080-0.4700.0030.350-0.2701.180-1.180
CPI 232.531233.596233.546236.293238.343238.031234.812236.119238.638237.945
Adj_EPS -0.113-0.0810.6830.081-0.4690.0030.355-0.2721.177-1.180
201101201104201107201110201201201204201207201210201301201303
per share eps -0.0400.2300.030-0.240-0.6500.110-0.280-0.1100.290-0.110
CPI 220.223224.906225.922226.421226.665230.085229.104231.317230.280232.773
Adj_EPS -0.0430.2430.032-0.252-0.6820.114-0.291-0.1130.300-0.112
200807200810200901200904200907200910201001201004201007201010
per share eps -0.080-0.190-0.440-0.300-0.010-0.0300.050-0.1000.620-0.330
CPI 219.964216.573211.143213.240215.351216.177216.687218.009218.011218.711
Adj_EPS -0.087-0.209-0.496-0.335-0.011-0.0330.055-0.1090.677-0.359
200601200604200607200610200701200704200707200710200801200804
per share eps 0.2700.5200.0700.4500.650-0.1700.630-0.1100.130-0.390
CPI 198.300201.500203.500201.800202.416206.686208.299208.936211.080214.823
Adj_EPS 0.3240.6140.0820.5310.764-0.1960.720-0.1250.147-0.432

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 P/E 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.

Forest City Realty Trust Inc's Shiller P/E Ratio of today is calculated as

Shiller P/E Ratio=Share Price/E10
=23.63/0.08
=295.38

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


Be Aware

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


Related Terms

Shiller P/E Ratio


Historical Data

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

Forest City Realty Trust Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Dec14
e10 0.000.660.840.890.710.640.540.350.290.18

Forest City Realty Trust Inc Quarterly Data

Apr13Jul13Oct13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
e10 0.250.210.280.280.200.150.180.120.220.08
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