Switch to:
Big Lots Inc  (NYSE:BIG) E10: $2.81 (As of Jul. 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.

Big Lots Inc's adjusted earnings per share data for the three months ended in Jul. 2017 was $0.670. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.81 for the trailing ten years ended in Jul. 2017.

As of today, Big Lots Inc's current stock price is $52.52. Big Lots Inc's E10 for the quarter that ended in Jul. 2017 was $2.81. Big Lots Inc's Shiller PE Ratio of today is 18.69.

During the past 13 years, the highest Shiller PE Ratio of Big Lots Inc was 208.63. The lowest was 13.84. And the median was 24.98.


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.

Big Lots Inc Annual Data

Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.74 1.90 2.08 2.39 2.66

Big Lots Inc Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 2.55 2.55 2.66 2.77 2.81

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, Big Lots Inc's adjusted earnings per share data for the three months ended in Jul. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jul. 2017 (Change)*Current CPI (Jul. 2017)
=0.67/244.786*244.786
=0.670

Current CPI (Jul. 2017) = 244.786.

Big Lots Inc Quarterly Data

per share eps CPI Adj_EPS
200710 0.140 208.936 0.164
200801 0.930 211.080 1.079
200804 0.420 214.823 0.479
200807 0.320 219.964 0.356
200810 0.150 216.573 0.170
200901 0.960 211.143 1.113
200904 0.440 213.240 0.505
200907 0.340 215.351 0.386
200910 0.370 216.177 0.419
201001 1.270 216.687 1.435
201004 0.680 218.009 0.764
201007 0.480 218.011 0.539
201010 0.230 218.711 0.257
201101 1.420 220.223 1.578
201104 0.700 224.906 0.762
201107 0.500 225.922 0.542
201110 0.060 226.421 0.065
201201 1.680 226.665 1.814
201204 0.630 230.085 0.670
201207 0.360 229.104 0.385
201210 -0.100 231.317 -0.106
201301 2.010 230.280 2.137
201304 0.560 232.531 0.590
201307 0.310 233.596 0.325
201310 -0.170 233.546 -0.178
201401 1.450 233.916 1.517
201404 0.060 237.072 0.062
201407 0.360 238.250 0.370
201410 -0.060 237.433 -0.062
201501 1.710 233.707 1.791
201504 0.600 236.599 0.621
201507 0.340 238.654 0.349
201510 -0.030 237.838 -0.031
201601 1.860 236.916 1.922
201604 0.790 239.261 0.808
201607 0.500 240.628 0.509
201610 0.030 241.729 0.030
201701 1.960 242.839 1.976
201704 1.150 244.524 1.151
201707 0.670 244.786 0.670

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.

Big Lots Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=52.52/2.81
=18.69

* 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 Big Lots Inc was 208.63. The lowest was 13.84. And the median was 24.98.


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


Headlines

From the Internet

BIG
5 Broker Favorite Stocks to Keep an Eye On

- Zacks 2017-10-20 09:32:00

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK