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TJX Companies Inc (NYSE:TJX)
E10
$2.26 (As of Oct. 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.

TJX Companies Inc's adjusted earnings per share data for the three months ended in Oct. 2016 was $0.830. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.26 for the trailing ten years ended in Oct. 2016.

As of today, TJX Companies Inc's current stock price is $77.29. TJX Companies Inc's E10 for the quarter that ended in Oct. 2016 was $2.26. TJX Companies Inc's Shiller P/E Ratio of today is 34.20.

During the past 13 years, the highest Shiller P/E Ratio of TJX Companies Inc was 43.21. The lowest was 13.87. And the median was 30.29.


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, TJX Companies Inc's adjusted earnings per share data for the three months ended in Oct. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Oct. 2016 (Change)*Current CPI (Oct. 2016)
=0.83/241.729*241.729
=0.830

Current CPI (Oct. 2016) = 241.729.

TJX Companies Inc Quarterly Data

201407201410201501201504201507201510201601201604201607201610
per share eps 0.7300.8500.9300.6900.8000.8600.9800.7600.8400.830
CPI 238.250237.433233.707236.599238.654237.838236.916239.261240.628241.729
Adj_EPS 0.7410.8650.9620.7050.8100.8741.0000.7680.8440.830
201201201204201207201210201301201304201307201310201401201404
per share eps 0.6200.5500.5600.6200.8200.6200.6600.8600.8000.640
CPI 226.665230.085229.104231.317230.280232.531233.596233.546233.916237.072
Adj_EPS 0.6610.5780.5910.6480.8610.6450.6830.8900.8270.653
200907200910201001201004201007201010201101201104201107201110
per share eps 0.3050.4050.4650.4000.3700.4600.4200.3400.4500.530
CPI 215.351216.177216.687218.009218.011218.711220.223224.906225.922226.421
Adj_EPS 0.3420.4530.5190.4440.4100.5080.4610.3650.4810.566
200701200704200707200710200801200804200807200810200901200904
per share eps 0.2150.1700.0650.2700.3300.2150.2250.2700.2900.245
CPI 202.416206.686208.299208.936211.080214.823219.964216.573211.143213.240
Adj_EPS 0.2570.1990.0750.3120.3780.2420.2470.3010.3320.278

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.

TJX Companies Inc's Shiller P/E Ratio of today is calculated as

Shiller P/E Ratio=Share Price/E10
=77.29/2.26
=34.20

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

During the past 13 years, the highest Shiller P/E Ratio of TJX Companies Inc was 43.21. The lowest was 13.87. And the median was 30.29.


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 local exchange's currency.

TJX Companies Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
e10 0.560.640.700.800.921.081.301.541.782.04

TJX Companies Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
e10 1.661.721.781.851.931.982.042.122.212.26
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