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JC Penney Co Inc (NYSE:JCP)
E10
$0.20 (As of Jan. 2016)

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.

JC Penney Co Inc's adjusted earnings per share data for the three months ended in Jan. 2016 was $-0.232. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.20 for the trailing ten years ended in Jan. 2016.

As of today, JC Penney Co Inc's current stock price is $9.66. JC Penney Co Inc's E10 for the quarter that ended in Jan. 2016 was $0.20. JC Penney Co Inc's Shiller P/E Ratio of today is 48.30.

During the past 13 years, the highest Shiller P/E Ratio of JC Penney Co Inc was 1155.00. The lowest was 4.02. And the median was 16.38.


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, JC Penney Co Inc's adjusted earnings per share data for the three months ended in Jan. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2016 (Change)*Current CPI (Jan. 2016)
=-0.232/236.916*236.916
=-0.232

Current CPI (Jan. 2016) = 236.916.

JC Penney Co Inc Quarterly Data

201310201401201404201407201410201501201504201507201510201601
per share eps -1.9400.476-1.150-0.560-0.620-0.016-0.550-0.450-0.450-0.232
CPI 233.546233.916237.072238.250237.433233.707236.599238.654237.838236.916
Adj_EPS -1.9680.482-1.149-0.557-0.619-0.016-0.551-0.447-0.448-0.232
201104201107201110201201201204201207201210201301201304201307
per share eps 0.2800.070-0.670-0.407-0.750-0.670-0.560-2.515-1.580-2.660
CPI 224.906225.922226.421226.665230.085229.104231.317230.280232.531233.596
Adj_EPS 0.2950.073-0.701-0.425-0.772-0.693-0.574-2.587-1.610-2.698
200810200901200904200907200910201001201004201007201010201101
per share eps 0.5600.9460.1100.0000.1100.8460.2500.0600.1901.139
CPI 216.573211.143213.240215.351216.177216.687218.009218.011218.711220.223
Adj_EPS 0.6131.0610.1220.0000.1210.9250.2720.0650.2061.225
200604200607200610200701200704200707200710200801200804200807
per share eps 0.8900.7601.2602.0661.0400.8101.1701.8610.5400.520
CPI 201.500203.500201.800202.416206.686208.299208.936211.080214.823219.964
Adj_EPS 1.0460.8851.4792.4181.1920.9211.3272.0890.5960.560

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.

JC Penney Co Inc's Shiller P/E Ratio of today is calculated as

Shiller P/E Ratio=Share Price/E10
=9.66/0.20
=48.30

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

During the past 13 years, the highest Shiller P/E Ratio of JC Penney Co Inc was 1155.00. The lowest was 4.02. And the median was 16.38.


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.

JC Penney Co Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
e10 0.280.500.541.582.122.081.481.370.890.20

JC Penney Co Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
e10 0.801.371.251.191.070.890.780.670.510.20
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