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Trimble Navigation Ltd (NAS:TRMB)
E10
$0.64 (As of Jun. 2014)

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.

Trimble Navigation Ltd's adjusted earnings per share data for the three months ended in Jun. 2014 was $0.288. 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 $0.64 for the trailing six years ended in Jun. 2014.

As of today, Trimble Navigation Ltd's current stock price is $29.23. Trimble Navigation Ltd's E10 for the trailing six years ended in Jun. 2014 was $0.64. Trimble Navigation Ltd's Shiller P/E Ratio of today is 46.00.

During the past 13 years, the highest Shiller P/E Ratio of Trimble Navigation Ltd was 704.30. The lowest was 14.80. And the median was 51.39.


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, Trimble Navigation Ltd's adjusted earnings per share data for the three months ended in Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=0.29/238.343*237.056
=0.288

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

Current CPI = 237.056.

Trimble Navigation Ltd Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 0.2000.2100.2100.1290.1900.2100.2100.2280.2600.290
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.2070.2170.2150.1330.1930.2130.2130.2320.2610.288
200909200912201003201006201009201012201103201106201109201112
per share eps 0.0650.0390.1150.0250.1350.1470.1600.2150.1100.116
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 0.0710.0430.1250.0270.1470.1590.1700.2260.1150.122
200809200812200903200906
per share eps 0.1550.0560.0700.085
CPI 218.783210.228212.709215.693
Adj_EPS 0.1680.0630.0780.093

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.

Trimble Navigation Ltd's Shiller P/E Ratio of today is calculated as

Shiller P/E Ratio=Share Price/E10
=29.23/0.64
=45.67

* 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 Trimble Navigation Ltd was 704.30. The lowest was 14.80. And the median was 51.39.


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.

Trimble Navigation Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
e10 0.110.150.210.330.410.430.450.490.530.59

Trimble Navigation Ltd Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
e10 0.510.520.540.530.550.560.580.590.620.64
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