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American Express Co  (NYSE:AXP) E10: $4.34 (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.

American Express Co's adjusted earnings per share data for the three months ended in Jun. 2017 was $1.470. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.34 for the trailing ten years ended in Jun. 2017.

As of today, American Express Co's current stock price is $92.09. American Express Co's E10 for the quarter that ended in Jun. 2017 was $4.34. American Express Co's Shiller PE Ratio of today is 21.22.

During the past 13 years, the highest Shiller PE Ratio of American Express Co was 26.80. The lowest was 3.98. And the median was 17.90.


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.

American Express Co 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 3.24 3.47 3.72 3.90 4.18

American Express Co 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 4.18 4.18 4.25 4.34 0.00

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, American Express Co'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)
=1.47/244.955*244.955
=1.470

Current CPI (Jun. 2017) = 244.955.

American Express Co Quarterly Data

per share eps CPI Adj_EPS
200709 0.900 208.490 1.057
200712 0.710 210.036 0.828
200803 0.850 213.528 0.975
200806 0.560 218.815 0.627
200809 0.700 218.783 0.784
200812 0.210 210.228 0.245
200903 0.310 212.709 0.357
200906 0.090 215.693 0.102
200909 0.530 215.969 0.601
200912 0.600 215.949 0.681
201003 0.730 217.631 0.822
201006 0.840 217.965 0.944
201009 0.900 218.439 1.009
201012 0.880 219.179 0.983
201103 0.970 223.467 1.063
201106 1.100 225.722 1.194
201109 1.030 226.889 1.112
201112 1.010 225.672 1.096
201203 1.070 229.392 1.143
201206 1.150 229.478 1.228
201209 1.090 231.407 1.154
201212 0.580 229.601 0.619
201303 1.150 232.773 1.210
201306 1.270 233.504 1.332
201309 1.250 234.149 1.308
201312 1.210 233.049 1.272
201403 1.330 236.293 1.379
201406 1.430 238.343 1.470
201409 1.400 238.031 1.441
201412 1.390 234.812 1.450
201503 1.480 236.119 1.535
201506 1.420 238.638 1.458
201509 1.240 237.945 1.277
201512 0.900 236.525 0.932
201603 1.450 238.132 1.492
201606 2.100 241.018 2.134
201609 1.200 241.428 1.218
201612 0.890 241.432 0.903
201703 1.340 243.801 1.346
201706 1.470 244.955 1.470

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.

American Express Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=92.09/4.34
=21.22

* 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 American Express Co was 26.80. The lowest was 3.98. And the median was 17.90.


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


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AXP
American Express Earnings Discussion

- Seekingalpha 2017-10-22 11:26:46

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