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Allergan PLC  (NYSE:AGN) E10: $3.56 (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.

Allergan PLC's adjusted earnings per share data for the three months ended in Jun. 2017 was $-2.370. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.56 for the trailing ten years ended in Jun. 2017.

As of today, Allergan PLC's current stock price is $189.27. Allergan PLC's E10 for the quarter that ended in Jun. 2017 was $3.56. Allergan PLC's Shiller PE Ratio of today is 53.17.

During the past 13 years, the highest Shiller PE Ratio of Allergan PLC was 2307.73. The lowest was 18.96. And the median was 55.45.


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.

Allergan PLC 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 1.03 0.29 -0.47 0.21 4.58

Allergan PLC 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 0.11 3.93 4.58 3.80 3.56

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, Allergan PLC'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)
=-2.37/244.955*244.955
=-2.370

Current CPI (Jun. 2017) = 244.955.

Allergan PLC Quarterly Data

per share eps CPI Adj_EPS
200709 0.310 208.490 0.364
200712 0.340 210.036 0.397
200803 0.450 213.528 0.516
200806 0.530 218.815 0.593
200809 0.620 218.783 0.694
200812 0.490 210.228 0.571
200903 0.430 212.709 0.495
200906 0.460 215.693 0.522
200909 0.550 215.969 0.624
200912 0.510 215.949 0.579
201003 0.570 217.631 0.642
201006 0.570 217.965 0.641
201009 0.210 218.439 0.235
201012 0.140 219.179 0.156
201103 0.360 223.467 0.395
201106 0.420 225.722 0.456
201109 0.540 226.889 0.583
201112 0.750 225.672 0.814
201203 0.430 229.392 0.459
201206 -0.490 229.478 -0.523
201209 0.600 231.407 0.635
201212 0.220 229.601 0.235
201303 -0.790 232.773 -0.831
201306 -4.270 233.504 -4.479
201309 0.490 234.149 0.513
201312 -0.700 233.049 -0.736
201403 0.550 236.293 0.570
201406 0.280 238.343 0.288
201409 -3.950 238.031 -4.065
201412 -3.030 234.812 -3.161
201503 -1.850 236.119 -1.919
201506 -0.800 238.638 -0.821
201509 13.290 237.945 13.682
201512 -2.200 236.525 -2.278
201603 0.470 238.132 0.483
201606 -1.440 241.018 -1.464
201609 38.580 241.428 39.144
201612 0.740 241.432 0.751
201703 -7.860 243.801 -7.897
201706 -2.370 244.955 -2.370

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.

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

Shiller PE Ratio=Share Price/E10
=189.27/3.56
=53.17

* 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 Allergan PLC was 2307.73. The lowest was 18.96. And the median was 55.45.


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

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