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Avon Products Inc  (NYSE:AVP) E10: $0.29 (As of Sep. 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.

Avon Products Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.010. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.29 for the trailing ten years ended in Sep. 2017.

As of today, Avon Products Inc's current stock price is $1.94. Avon Products Inc's E10 for the quarter that ended in Sep. 2017 was $0.29. Avon Products Inc's Shiller PE Ratio of today is 6.69.

During the past 13 years, the highest Shiller PE Ratio of Avon Products Inc was 33.18. The lowest was 3.62. And the median was 13.55.


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.

Avon Products 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 1.52 1.35 1.04 0.56 0.41

Avon Products Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 0.46 0.41 0.36 0.32 0.29

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, Avon Products Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=0.01/246.819*246.819
=0.010

Current CPI (Sep. 2017) = 246.819.

Avon Products Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.290 210.036 0.341
200803 0.430 213.528 0.497
200806 0.550 218.815 0.620
200809 0.520 218.783 0.587
200812 0.530 210.228 0.622
200903 0.270 212.709 0.313
200906 0.190 215.693 0.217
200909 0.360 215.969 0.411
200912 0.620 215.949 0.709
201003 0.100 217.631 0.113
201006 0.390 217.965 0.442
201009 0.380 218.439 0.429
201012 0.520 219.179 0.586
201103 0.330 223.467 0.364
201106 0.470 225.722 0.514
201109 0.380 226.889 0.413
201112 0.000 225.672 0.000
201203 0.060 229.392 0.065
201206 0.140 229.478 0.151
201209 0.070 231.407 0.075
201212 -0.370 229.601 -0.398
201303 -0.030 232.773 -0.032
201306 0.070 233.504 0.074
201309 -0.010 234.149 -0.011
201312 -0.160 233.049 -0.169
201403 -0.380 236.293 -0.397
201406 0.040 238.343 0.041
201409 0.210 238.031 0.218
201412 -0.750 234.812 -0.788
201503 -0.330 236.119 -0.345
201506 0.070 238.638 0.072
201509 -1.580 237.945 -1.639
201512 -0.760 236.525 -0.793
201603 -0.380 238.132 -0.394
201606 0.060 241.018 0.061
201609 0.070 241.428 0.072
201612 -0.040 241.432 -0.041
201703 -0.100 243.801 -0.101
201706 -0.120 244.955 -0.121
201709 0.010 246.819 0.010

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.

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

Shiller PE Ratio=Share Price/E10
=1.94/0.29
=6.69

* 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 Avon Products Inc was 33.18. The lowest was 3.62. And the median was 13.55.


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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