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Benchmark Electronics Inc  (NYSE:BHE) E10: $1.02 (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.

Benchmark Electronics Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.350. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.02 for the trailing ten years ended in Sep. 2017.

As of today, Benchmark Electronics Inc's current stock price is $30.50. Benchmark Electronics Inc's E10 for the quarter that ended in Sep. 2017 was $1.02. Benchmark Electronics Inc's Shiller PE Ratio of today is 29.90.

During the past 13 years, the highest Shiller PE Ratio of Benchmark Electronics Inc was 38.48. The lowest was 10.43. And the median was 23.24.


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.

Benchmark Electronics 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 0.92 1.02 1.04 1.08 1.02

Benchmark Electronics 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 1.04 1.02 1.01 1.02 1.02

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, Benchmark Electronics 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)
=0.35/246.819*246.819
=0.350

Current CPI (Sep. 2017) = 246.819.

Benchmark Electronics Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.280 210.036 0.329
200803 0.330 213.528 0.381
200806 0.330 218.815 0.372
200809 0.360 218.783 0.406
200812 -3.040 210.228 -3.569
200903 0.140 212.709 0.162
200906 0.180 215.693 0.206
200909 0.250 215.969 0.286
200912 0.260 215.949 0.297
201003 0.290 217.631 0.329
201006 0.320 217.965 0.362
201009 0.360 218.439 0.407
201012 0.310 219.179 0.349
201103 0.240 223.467 0.265
201106 0.240 225.722 0.262
201109 0.340 226.889 0.370
201112 0.060 225.672 0.066
201203 0.100 229.392 0.108
201206 0.240 229.478 0.258
201209 0.340 231.407 0.363
201212 0.330 229.601 0.355
201303 0.210 232.773 0.223
201306 0.160 233.504 0.169
201309 0.430 234.149 0.453
201312 1.230 233.049 1.303
201403 0.350 236.293 0.366
201406 0.410 238.343 0.425
201409 0.310 238.031 0.321
201412 0.440 234.812 0.462
201503 0.270 236.119 0.282
201506 0.400 238.638 0.414
201509 0.400 237.945 0.415
201512 0.760 236.525 0.793
201603 0.220 238.132 0.228
201606 0.260 241.018 0.266
201609 0.440 241.428 0.450
201612 0.380 241.432 0.388
201703 0.190 243.801 0.192
201706 0.340 244.955 0.343
201709 0.350 246.819 0.350

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.

Benchmark Electronics Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=30.50/1.02
=29.90

* 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 Benchmark Electronics Inc was 38.48. The lowest was 10.43. And the median was 23.24.


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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