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Spartech Corporation (NYSE:SEH)
E10
$0.00 (As of Oct. 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.

Spartech Corporation's adjusted earnings per share data for the three months ended in Oct. 2012 was $-0.022. 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 Oct. 2012.

As of today, Spartech Corporation's current stock price is $0.00. Spartech Corporation's E10 for the trailing six years ended in Oct. 2012 was $0.00. Spartech Corporation'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, Spartech Corporation's adjusted earnings per share data for the three months ended in Oct. 2012 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2012*CPI of Current
=-0.021/231.317*239.229
=-0.022

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

Current CPI = 239.229.

Spartech Corporation Quarterly Data

201007201010201101201104201107201110201201201204201207201210
per share eps -0.120-1.8230.0300.0800.100-0.902-0.0700.1200.060-0.021
CPI 218.011218.711220.223224.906225.922226.421226.665230.085229.104231.317
Adj_EPS -0.132-1.9940.0330.0850.106-0.953-0.0740.1250.063-0.022
200801200804200807200810200901200904200907200910201001201004
per share eps -0.1200.1400.150-6.520-0.1700.1200.0500.2600.1500.140
CPI 211.080214.823219.964216.573211.143213.240215.351216.177216.687218.009
Adj_EPS -0.1360.1560.163-7.202-0.1930.1350.0560.2880.1660.154
200701200704200707200710
per share eps 0.2500.4900.2700.040
CPI 202.416206.686208.299208.936
Adj_EPS 0.2950.5670.3100.046

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.

Spartech Corporation'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.

Spartech Corporation Annual Data

Oct03Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12
e10 0.000.000.000.000.000.000.000.000.000.00

Spartech Corporation Quarterly Data

Jul10Oct10Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12
e10 0.000.000.000.000.000.000.000.000.000.00
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