Switch to:
American Capital Ltd  (NAS:ACAS) E10: \$-0.46 (As of Sep. 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.

American Capital Ltd's adjusted earnings per share data for the three months ended in Sep. 2016 was \$0.630. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is \$-0.46 for the trailing ten years ended in Sep. 2016.

As of today, American Capital Ltd's current stock price is \$17.99. American Capital Ltd's E10 for the quarter that ended in Sep. 2016 was \$-0.46. American Capital Ltd's Shiller PE Ratio of today is .

Historical Data

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

American Capital Ltd Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 E10 0.27 0.57 0.44 0.26 -0.14

American Capital Ltd Quarterly Data

 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 E10 0.00 -0.14 -0.30 -0.45 -0.46

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Calculation

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, American Capital Ltd's adjusted earnings per share data for the three months ended in Sep. 2016 was:

 Adj_EPS = Earnings per Share (Diluted) / CPI of Sep. 2016 (Change) * Current CPI (Sep. 2016) = 0.63 / 241.428 * 241.428 = 0.630

Current CPI (Sep. 2016) = 241.428.

American Capital Ltd Quarterly Data

 per share eps CPI Adj_EPS 200612 1.622 201.800 1.941 200703 0.646 205.352 0.759 200706 3.514 208.352 4.072 200709 0.083 208.490 0.096 200712 -1.179 210.036 -1.355 200803 -4.160 213.528 -4.704 200806 -0.340 218.815 -0.375 200809 -2.630 218.783 -2.902 200812 -8.230 210.228 -9.451 200903 -2.650 212.709 -3.008 200906 -2.520 215.693 -2.821 200909 0.270 215.969 0.302 200912 0.710 215.949 0.794 201003 0.650 217.631 0.721 201006 0.840 217.965 0.930 201009 0.430 218.439 0.475 201012 1.110 219.179 1.223 201103 1.210 223.467 1.307 201106 1.130 225.722 1.209 201109 -1.340 226.889 -1.426 201112 1.680 225.672 1.797 201203 1.710 229.392 1.800 201206 0.710 229.478 0.747 201209 0.600 231.407 0.626 201212 0.400 229.601 0.421 201303 1.090 232.773 1.131 201306 0.070 233.504 0.072 201309 -0.003 234.149 -0.003 201312 -0.600 233.049 -0.622 201403 0.250 236.293 0.255 201406 0.760 238.343 0.770 201409 0.410 238.031 0.416 201412 0.140 234.812 0.144 201503 0.050 236.119 0.051 201506 0.220 238.638 0.223 201509 -0.140 237.945 -0.142 201512 -0.850 236.525 -0.868 201603 -0.340 238.132 -0.345 201606 0.470 241.018 0.471 201609 0.630 241.428 0.630

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 PE 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.

American Capital Ltd's Shiller P/E Ratio of today is calculated as

 Shiller PE Ratio = Share Price / E10 = 17.99 / -0.46 =

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

Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.

Related Terms