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Array BioPharma Inc  (NAS:ARRY) E10: $-1.14 (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.

Array BioPharma Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $-0.180. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-1.14 for the trailing ten years ended in Jun. 2017.

As of today, Array BioPharma Inc's current stock price is $11.37. Array BioPharma Inc's E10 for the quarter that ended in Jun. 2017 was $-1.14. Array BioPharma Inc's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Array BioPharma Inc was 11.68. The lowest was -2.60. And the median was 7.00.


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.

Array BioPharma Inc Annual Data

Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.35 -1.33 -1.25 -1.20 -1.14

Array BioPharma 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 -1.20 -1.20 -1.16 -1.15 -1.14

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, Array BioPharma 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)
=-0.18/244.955*244.955
=-0.180

Current CPI (Jun. 2017) = 244.955.

Array BioPharma Inc Quarterly Data

per share eps CPI Adj_EPS
200709 -0.400 208.490 -0.470
200712 -0.430 210.036 -0.501
200803 -0.510 213.528 -0.585
200806 -0.690 218.815 -0.772
200809 -0.710 218.783 -0.795
200812 -0.790 210.228 -0.920
200903 -0.620 212.709 -0.714
200906 -0.550 215.693 -0.625
200909 -0.520 215.969 -0.590
200912 -0.440 215.949 -0.499
201003 -0.300 217.631 -0.338
201006 -0.300 217.965 -0.337
201009 -0.200 218.439 -0.224
201012 -0.230 219.179 -0.257
201103 -0.200 223.467 -0.219
201106 -0.390 225.722 -0.423
201109 -0.060 226.889 -0.065
201112 -0.060 225.672 -0.065
201203 -0.110 229.392 -0.117
201206 -0.090 229.478 -0.096
201209 -0.130 231.407 -0.138
201212 -0.100 229.601 -0.107
201303 -0.190 232.773 -0.200
201306 -0.150 233.504 -0.157
201309 -0.130 234.149 -0.136
201312 -0.130 233.049 -0.137
201403 -0.200 236.293 -0.207
201406 -0.220 238.343 -0.226
201409 -0.210 238.031 -0.216
201412 -0.060 234.812 -0.063
201503 0.370 236.119 0.384
201506 -0.090 238.638 -0.092
201509 -0.150 237.945 -0.154
201512 -0.170 236.525 -0.176
201603 -0.160 238.132 -0.165
201606 -0.180 241.018 -0.183
201609 -0.200 241.428 -0.203
201612 -0.140 241.432 -0.142
201703 -0.210 243.801 -0.211
201706 -0.180 244.955 -0.180

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.

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

Shiller PE Ratio=Share Price/E10
=11.37/-1.14
=

* 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 Array BioPharma Inc was 11.68. The lowest was -2.60. And the median was 7.00.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


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