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TSR Inc (NAS:TSRI)
E10
$0.19 (As of May. 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.

TSR Inc's adjusted earnings per share data for the three months ended in May. 2016 was $0.080. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.19 for the trailing ten years ended in May. 2016.

As of today, TSR Inc's current stock price is $7.81. TSR Inc's E10 for the quarter that ended in May. 2016 was $0.19. TSR Inc's Shiller P/E Ratio of today is 41.11.

During the past 13 years, the highest Shiller P/E Ratio of TSR Inc was 41.11. The lowest was 2.67. And the median was 6.38.


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, TSR Inc's adjusted earnings per share data for the three months ended in May. 2016 was:

Adj_EPS=Earnigns per Share/CPI of May. 2016 (Change)*Current CPI (May. 2016)
=0.08/240.236*240.236
=0.080

Current CPI (May. 2016) = 240.236.

TSR Inc Quarterly Data

201402201405201408201411201502201505201508201511201602201605
per share eps -0.046-0.0200.0130.072-0.0430.0570.0680.061-0.0120.080
CPI 234.781237.900237.852236.151234.722237.805238.316237.336237.111240.236
Adj_EPS -0.047-0.0200.0130.073-0.0440.0580.0690.062-0.0120.080
201108201111201202201205201208201211201302201305201308201311
per share eps 0.0200.020-0.050-0.021-0.050-0.090-0.1300.0060.0100.016
CPI 226.545226.230227.663229.815230.379230.221232.166232.945233.877233.069
Adj_EPS 0.0210.021-0.053-0.022-0.052-0.094-0.1350.0060.0100.016
200902200905200908200911201002201005201008201011201102201105
per share eps 0.0400.0600.0400.0400.0000.0000.0100.074-0.0330.046
CPI 212.193213.856215.834216.330216.741218.178218.312218.803221.309225.964
Adj_EPS 0.0450.0670.0450.0440.0000.0000.0110.081-0.0360.049
200608200611200702200705200708200711200802200805200808200811
per share eps 0.1940.1810.0800.1400.2000.1600.1000.1000.1000.100
CPI 203.900201.500203.499207.949207.917210.177211.693216.632219.086212.425
Adj_EPS 0.2290.2160.0940.1620.2310.1830.1130.1110.1100.113

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.

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

Shiller P/E Ratio=Share Price/E10
=7.81/0.19
=41.11

* 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 TSR Inc was 41.11. The lowest was 2.67. And the median was 6.38.


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.

TSR Inc Annual Data

May07May08May09May10May11May12May13May14May15May16
e10 1.351.321.120.000.790.630.470.350.240.19

TSR Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
e10 0.380.350.320.290.260.240.220.200.180.19
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