Switch to:
Amazon.com Inc  (NAS:AMZN) E10: $1.74 (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.

Amazon.com Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.400. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.74 for the trailing ten years ended in Jun. 2017.

As of today, Amazon.com Inc's current stock price is $997.00. Amazon.com Inc's E10 for the quarter that ended in Jun. 2017 was $1.74. Amazon.com Inc's Shiller PE Ratio of today is 572.99.

During the past 13 years, the highest Shiller PE Ratio of Amazon.com Inc was 3461.75. The lowest was 146.97. And the median was 289.36.


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.

Amazon.com 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 1.23 1.29 1.08 1.11 1.57

Amazon.com 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 1.40 1.45 1.57 1.70 1.74

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, Amazon.com 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)
=0.4/244.955*244.955
=0.400

Current CPI (Jun. 2017) = 244.955.

Amazon.com Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.190 208.490 0.223
200712 0.480 210.036 0.560
200803 0.340 213.528 0.390
200806 0.370 218.815 0.414
200809 0.270 218.783 0.302
200812 0.520 210.228 0.606
200903 0.410 212.709 0.472
200906 0.320 215.693 0.363
200909 0.450 215.969 0.510
200912 0.860 215.949 0.976
201003 0.660 217.631 0.743
201006 0.450 217.965 0.506
201009 0.510 218.439 0.572
201012 0.910 219.179 1.017
201103 0.440 223.467 0.482
201106 0.410 225.722 0.445
201109 0.140 226.889 0.151
201112 0.380 225.672 0.412
201203 0.280 229.392 0.299
201206 0.010 229.478 0.011
201209 -0.600 231.407 -0.635
201212 0.210 229.601 0.224
201303 0.180 232.773 0.189
201306 -0.020 233.504 -0.021
201309 -0.090 234.149 -0.094
201312 0.520 233.049 0.547
201403 0.230 236.293 0.238
201406 -0.270 238.343 -0.277
201409 -0.950 238.031 -0.978
201412 0.470 234.812 0.490
201503 -0.120 236.119 -0.124
201506 0.190 238.638 0.195
201509 0.170 237.945 0.175
201512 1.010 236.525 1.046
201603 1.070 238.132 1.101
201606 1.780 241.018 1.809
201609 0.520 241.428 0.528
201612 1.540 241.432 1.562
201703 1.480 243.801 1.487
201706 0.400 244.955 0.400

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.

Amazon.com Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=997.00/1.74
=572.99

* 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 Amazon.com Inc was 3461.75. The lowest was 146.97. And the median was 289.36.


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

A Detour Into Upgrades and Downgrades

- Fool 2017-10-18 22:50:00

Why Does Amazon Want to Scan My Body?

- Fool 2017-10-18 21:44:00

5 Percent Yielder Trading Significant Discount Peers

- Seekingalpha 2017-10-18 21:33:34

Three Reasons Fang Phenomenon Will End Badly

- Seekingalpha 2017-10-18 19:35:57

Walmart Is Running Itself Like a Startup

- theStreet 2017-10-18 15:59:00

J C Penney Right Path Co Exist Amazon

- Seekingalpha 2017-10-18 15:44:46

Alibaba Investors, Here's Your Next Buy Signal

- theStreet 2017-10-18 13:34:00

Amazon Will Winner Take Mentality Support Stock

- Seekingalpha 2017-10-18 13:01:29

Fang Default Stocks Buy Market Misbehaves

- Seekingalpha 2017-10-18 12:03:05

Netflix Dangerous Now

- Seekingalpha 2017-10-18 10:52:03

5 Stores With the Best Return Policies

- theStreet 2017-10-18 09:32:00

3 Stocks to Buy and Hold Forever

- Fool 2017-10-18 08:08:00

Forget Dow 23,000, Here Comes Dow 1 Million!

- theStreet 2017-10-18 08:00:00

Misfit Stocks Portfolio

- Seekingalpha 2017-10-18 05:14:09

These Giant Printers Are Meant to Make Rockets

- Bloomberg 2017-10-18 05:00:31

Why REITs may not be so special

- MarketWatch 2017-10-18 04:55:00

Netflix Says Become Nation Couch Potatoes

- Seekingalpha 2017-10-17 17:17:29

Dr. Oz Reveals How to Fix Healthcare in America

- theStreet 2017-10-17 15:46:00

T Time Look Gift Horse Mouth

- Seekingalpha 2017-10-17 13:11:28

Earnings: 3 Hot Stocks to Watch

- Fool 2017-10-17 12:25:00

Video: Jim Cramer Reacts to Netflix's Earnings

- theStreet 2017-10-17 11:32:00

Netflix Still Carries Potential Abroad

- theStreet 2017-10-17 11:24:00

Netflix shows that it has no real competitors

- MarketWatch 2017-10-17 11:08:00

Walgreens Pick Sell Offers 40 Percent Upside

- Seekingalpha 2017-10-17 08:26:27

Wall Street Breakfast Dow Earnings Focus Amid Records

- Seekingalpha 2017-10-17 06:59:17

Profit Elephant Room

- Seekingalpha 2017-10-17 05:52:44

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