Switch to:
Alere Inc  (NYSE:ALR) E10: $-2.52 (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.

Alere Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $-1.130. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-2.52 for the trailing ten years ended in Jun. 2017.

As of today, Alere Inc's current stock price is $50.99. Alere Inc's E10 for the quarter that ended in Jun. 2017 was $-2.52. Alere Inc'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.

* Premium members only.

Alere Inc 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 -2.35 -2.57 -2.52 -2.23 -2.40

Alere Inc 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 -2.28 -2.23 -2.40 -2.52 -2.52

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, Alere Inc'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)
=-1.13/244.955*244.955
=-1.130

Current CPI (Jun. 2017) = 244.955.

Alere Inc Quarterly Data

per share eps CPI Adj_EPS
200709 -3.740 208.490 -4.394
200712 0.140 210.036 0.163
200803 -0.050 213.528 -0.057
200806 -0.430 218.815 -0.481
200809 -0.120 218.783 -0.134
200812 0.140 210.228 0.163
200903 0.010 212.709 0.012
200906 -0.020 215.693 -0.023
200909 0.170 215.969 0.193
200912 -0.040 215.949 -0.045
201003 0.110 217.631 0.124
201006 -0.100 217.965 -0.112
201009 -0.030 218.439 -0.034
201012 -12.304 219.179 -13.751
201103 0.090 223.467 0.099
201106 -0.050 225.722 -0.054
201109 2.480 226.889 2.677
201112 -4.390 225.672 -4.765
201203 -0.050 229.392 -0.053
201206 -0.230 229.478 -0.246
201209 -0.110 231.407 -0.116
201212 -0.850 229.601 -0.907
201303 0.090 232.773 0.095
201306 -0.810 233.504 -0.850
201309 -0.300 234.149 -0.314
201312 -0.150 233.049 -0.158
201403 -0.130 236.293 -0.135
201406 -0.610 238.343 -0.627
201409 -1.250 238.031 -1.286
201412 1.330 234.812 1.387
201503 2.430 236.119 2.521
201506 0.110 238.638 0.113
201509 -0.100 237.945 -0.103
201512 -0.290 236.525 -0.300
201603 -0.130 238.132 -0.134
201606 -0.440 241.018 -0.447
201609 0.190 241.428 0.193
201612 -1.380 241.432 -1.400
201703 -0.800 243.801 -0.804
201706 -1.130 244.955 -1.130

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.

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

Shiller PE Ratio=Share Price/E10
=50.99/-2.52
=

* 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


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