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Focus Media Holding, Ltd. (NAS:FMCN)
E10
$0.00 (As of Dec. 2012)

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.

Focus Media Holding, Ltd.'s adjusted earnings per share data for the three months ended in Dec. 2012 was $0.598. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our e10, which is $0.00 for the trailing six years ended in Dec. 2012.

As of today, Focus Media Holding, Ltd.'s current stock price is $0.00. Focus Media Holding, Ltd.'s E10 for the trailing six years ended in Dec. 2012 was $0.00. Focus Media Holding, Ltd.'s Shiller P/E Ratio of today is 0.00.


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, Focus Media Holding, Ltd.'s adjusted earnings per share data for the three months ended in Dec. 2012 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2012*CPI of Current
=0.576/229.601*238.389
=0.598

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 238.389.

Focus Media Holding, Ltd. Quarterly Data

201009201012201103201106201109201112201203201206201209201212
per share eps 0.7650.3340.7500.3000.4450.2781.40011.0500.5000.576
CPI 218.439219.179223.467225.722226.889225.672229.392229.478231.407229.601
Adj_EPS 0.8350.3630.8000.3170.4680.2941.45511.4790.5150.598
200803200806200809200812200903200906200909200912201003201006
per share eps -2.1001.4001.900-7.300-0.040-0.180-0.990-0.440-0.0070.170
CPI 213.528218.815218.783210.228212.709215.693215.969215.949217.631217.965
Adj_EPS -2.3451.5252.070-8.278-0.045-0.199-1.093-0.486-0.0080.186
200703200706200709200712
per share eps 0.1500.3200.3701.530
CPI 205.352208.352208.490210.036
Adj_EPS 0.1740.3660.4231.737

Add all the adjusted EPS together and divide 6 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.

Focus Media Holding, Ltd.'s Shiller P/E Ratio of today is calculated as

Shiller P/E Ratio=Share Price/E10
=0.00/0.00
=

* 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.

Focus Media Holding, Ltd. Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
e10 0.000.000.000.000.000.000.000.000.000.00

Focus Media Holding, Ltd. Quarterly Data

Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12
e10 0.000.000.000.000.000.000.000.000.000.00
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