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Tesco PLC (OTCPK:TSCDY)
E10
\$0.55 (As of Feb. 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.

Tesco PLC's adjusted earnings per share data for the fiscal year that ended in Feb. 2016 was \$0.073. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is \$0.55 for the trailing ten years ended in Feb. 2016.

As of today, Tesco PLC's current stock price is \$7.08. Tesco PLC's E10 for the fiscal year that ended in Feb. 2016 was \$0.55. Tesco PLC's Shiller P/E Ratio of today is 12.87.

During the past 13 years, the highest Shiller P/E Ratio of Tesco PLC was 32.47. The lowest was 6.64. And the median was 15.87.

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, Tesco PLC's adjusted earnings per share data for the fiscal year that ended in Feb. 2016 was:

 Adj_EPS = Earnigns per Share / CPI of Feb. 2016 (Change) * Current CPI (Feb. 2016) = 0.0728571428571 / 237.111 * 237.111 = 0.073

Current CPI (Feb. 2016) = 237.111.

Tesco PLC Annual Data

 200702 200802 200902 201002 201102 201202 201302 201402 201502 201602 per share eps 1.382 1.568 1.169 1.369 1.597 1.652 0.017 0.599 -3.259 0.073 CPI 203.499 211.693 212.193 216.741 221.309 227.663 232.166 234.781 234.722 237.111 Adj_EPS 1.611 1.756 1.306 1.497 1.711 1.721 0.017 0.605 0 0.073

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.

Tesco PLC's Shiller P/E Ratio of today is calculated as

 Shiller P/E Ratio = Share Price / E10 = 7.08 / 0.55 = 12.87

* 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 Tesco PLC was 32.47. The lowest was 6.64. And the median was 15.87.

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.

Tesco PLC Annual Data

 Feb07 Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 e10 0.89 1.02 0.81 0.96 1.19 1.25 1.14 1.26 0.70 0.55

Tesco PLC Semi-Annual Data

 Feb12 Aug12 Feb13 Aug13 Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 e10 1.25 0.00 1.14 0.00 1.26 0.00 0.70 0.00 0.55 0.00
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