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B/E Aerospace Inc  (NAS:BEAV) E10: $1.90 (As of Dec. 2016)

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.

B/E Aerospace Inc's adjusted earnings per share data for the three months ended in Dec. 2016 was $0.600. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.90 for the trailing ten years ended in Dec. 2016.

As of today, B/E Aerospace Inc's current stock price is $64.47. B/E Aerospace Inc's E10 for the quarter that ended in Dec. 2016 was $1.90. B/E Aerospace Inc's Shiller PE Ratio of today is 33.93.

During the past 13 years, the highest Shiller PE Ratio of B/E Aerospace Inc was 94.43. The lowest was 22.43. And the median was 39.77.


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.

B/E Aerospace 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 0.85 1.41 1.57 1.69 1.90

B/E Aerospace Inc Quarterly Data

Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
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 1.69 1.77 1.84 1.88 1.90

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, B/E Aerospace Inc's adjusted earnings per share data for the three months ended in Dec. 2016 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2016 (Change)*Current CPI (Dec. 2016)
=0.6/241.432*241.432
=0.600

Current CPI (Dec. 2016) = 241.432.

B/E Aerospace Inc Quarterly Data

per share eps CPI Adj_EPS
200703 0.400 205.352 0.470
200706 0.310 208.352 0.359
200709 0.480 208.490 0.556
200712 0.460 210.036 0.529
200803 0.530 213.528 0.599
200806 0.590 218.815 0.651
200809 0.540 218.783 0.596
200812 -2.710 210.228 -3.112
200903 0.380 212.709 0.431
200906 0.350 215.693 0.392
200909 0.360 215.969 0.402
200912 0.330 215.949 0.369
201003 0.340 217.631 0.377
201006 0.370 217.965 0.410
201009 0.410 218.439 0.453
201012 0.310 219.179 0.341
201103 0.490 223.467 0.529
201106 0.540 225.722 0.578
201109 0.640 226.889 0.681
201112 0.560 225.672 0.599
201203 0.670 229.392 0.705
201206 0.690 229.478 0.726
201209 0.180 231.407 0.188
201212 0.730 229.601 0.768
201303 0.870 232.773 0.902
201306 0.890 233.504 0.920
201309 0.890 234.149 0.918
201312 0.870 233.049 0.901
201403 1.050 236.293 1.073
201406 1.040 238.343 1.053
201409 0.980 238.031 0.994
201412 -2.080 234.812 -2.139
201503 0.740 236.119 0.757
201506 0.750 238.638 0.759
201509 0.440 237.945 0.446
201512 0.800 236.525 0.817
201603 0.810 238.132 0.821
201606 0.840 241.018 0.841
201609 0.830 241.428 0.830
201612 0.600 241.432 0.600

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.

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

Shiller PE Ratio=Share Price/E10
=64.47/1.90
=33.93

* 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 B/E Aerospace Inc was 94.43. The lowest was 22.43. And the median was 39.77.


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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