Switch to:
Adobe Systems Inc  (NAS:ADBE) E10: $1.56 (As of Aug. 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.

Adobe Systems Inc's adjusted earnings per share data for the three months ended in Aug. 2017 was $0.840. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.56 for the trailing ten years ended in Aug. 2017.

As of today, Adobe Systems Inc's current stock price is $175.64. Adobe Systems Inc's E10 for the quarter that ended in Aug. 2017 was $1.56. Adobe Systems Inc's Shiller PE Ratio of today is 112.59.

During the past 13 years, the highest Shiller PE Ratio of Adobe Systems Inc was 112.76. The lowest was 18.35. And the median was 45.81.


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.

Adobe Systems Inc Annual Data

Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Nov14 Nov15 Nov16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.29 1.29 1.25 1.23 1.39

Adobe Systems Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
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 1.34 1.39 1.45 1.51 1.56

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, Adobe Systems Inc's adjusted earnings per share data for the three months ended in Aug. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2017 (Change)*Current CPI (Aug. 2017)
=0.84/245.519*245.519
=0.840

Current CPI (Aug. 2017) = 245.519.

Adobe Systems Inc Quarterly Data

per share eps CPI Adj_EPS
200711 0.380 210.177 0.444
200802 0.380 211.693 0.441
200805 0.400 216.632 0.453
200808 0.350 219.086 0.392
200811 0.460 212.425 0.532
200902 0.300 212.193 0.347
200905 0.240 213.856 0.276
200908 0.260 215.834 0.296
200911 -0.060 216.330 -0.068
201002 0.240 216.741 0.272
201005 0.280 218.178 0.315
201008 0.440 218.312 0.495
201011 0.520 218.803 0.583
201102 0.460 221.309 0.510
201105 0.450 225.964 0.489
201108 0.390 226.545 0.423
201111 0.350 226.230 0.380
201202 0.370 227.663 0.399
201205 0.450 229.815 0.481
201208 0.400 230.379 0.426
201211 0.440 230.221 0.469
201302 0.130 232.166 0.137
201305 0.150 232.945 0.158
201308 0.160 233.877 0.168
201311 0.120 233.069 0.126
201402 0.090 234.781 0.094
201405 0.170 237.900 0.175
201408 0.090 237.852 0.093
201411 0.180 236.151 0.187
201502 0.170 234.722 0.178
201505 0.290 237.805 0.299
201508 0.340 238.316 0.350
201511 0.440 237.336 0.455
201602 0.500 237.111 0.518
201605 0.480 240.229 0.491
201608 0.540 240.849 0.550
201611 0.800 241.353 0.814
201702 0.800 243.603 0.806
201705 0.750 244.733 0.752
201708 0.840 245.519 0.840

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.

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

Shiller PE Ratio=Share Price/E10
=175.64/1.56
=112.59

* 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 Adobe Systems Inc was 112.76. The lowest was 18.35. And the median was 45.81.


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

From the Internet

New FANGs for Halloween: Best of Cramer

- theStreet 2017-10-22 16:05:00

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