Switch to:
Arch Capital Group Ltd  (NAS:ACGL) E10: $4.67 (As of Jun. 2017)

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.

Arch Capital Group Ltd's adjusted earnings per share data for the three months ended in Jun. 2017 was $1.250. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.67 for the trailing ten years ended in Jun. 2017.

As of today, Arch Capital Group Ltd's current stock price is $102.15. Arch Capital Group Ltd's E10 for the quarter that ended in Jun. 2017 was $4.67. Arch Capital Group Ltd's Shiller PE Ratio of today is 21.87.

During the past 13 years, the highest Shiller PE Ratio of Arch Capital Group Ltd was 34.15. The lowest was 11.67. And the median was 15.77.


Historical Data

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

* Premium members only.

Arch Capital Group Ltd Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.07 3.43 3.87 4.23 4.48

Arch Capital Group Ltd Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.46 4.56 4.48 4.60 4.67

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, Arch Capital Group Ltd's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=1.25/244.955*244.955
=1.250

Current CPI (Jun. 2017) = 244.955.

Arch Capital Group Ltd Quarterly Data

per share eps CPI Adj_EPS
200709 0.920 208.490 1.081
200712 1.093 210.036 1.275
200803 0.927 213.528 1.063
200806 0.973 218.815 1.089
200809 0.140 218.783 0.157
200812 -0.743 210.228 -0.866
200903 0.747 212.709 0.860
200906 0.810 215.693 0.920
200909 1.463 215.969 1.659
200912 1.563 215.949 1.773
201003 1.263 217.631 1.422
201006 1.480 217.965 1.663
201009 0.920 218.439 1.032
201012 1.500 219.179 1.676
201103 0.140 223.467 0.153
201106 0.650 225.722 0.705
201109 1.180 226.889 1.274
201112 1.010 225.672 1.096
201203 1.140 229.392 1.217
201206 1.460 229.478 1.558
201209 1.330 231.407 1.408
201212 0.100 229.601 0.107
201303 1.850 232.773 1.947
201306 1.260 233.504 1.322
201309 0.800 234.149 0.837
201312 1.150 233.049 1.209
201403 1.300 236.293 1.348
201406 1.480 238.343 1.521
201409 1.640 238.031 1.688
201412 1.600 234.812 1.669
201503 2.160 236.119 2.241
201506 0.880 238.638 0.903
201509 0.600 237.945 0.618
201512 0.430 236.525 0.445
201603 1.200 238.132 1.234
201606 1.650 241.018 1.677
201609 1.980 241.428 2.009
201612 0.490 241.432 0.497
201703 1.740 243.801 1.748
201706 1.250 244.955 1.250

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.

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

Shiller PE Ratio=Share Price/E10
=102.15/4.67
=21.87

* 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 Arch Capital Group Ltd was 34.15. The lowest was 11.67. And the median was 15.77.


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


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK