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Brocade Communications Systems Inc  (NAS:BRCD) E10: $0.36 (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.

Brocade Communications Systems Inc's adjusted earnings per share data for the three months ended in Jul. 2017 was $-0.050. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.36 for the trailing ten years ended in Jul. 2017.

As of today, Brocade Communications Systems Inc's current stock price is $12.73. Brocade Communications Systems Inc's E10 for the quarter that ended in Jul. 2017 was $0.36. Brocade Communications Systems Inc's Shiller PE Ratio of today is 35.36.

During the past 13 years, the highest Shiller PE Ratio of Brocade Communications Systems Inc was 72.38. The lowest was 15.43. And the median was 35.57.


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.

Brocade Communications Systems Inc Annual Data

Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.11 0.24 0.30 0.36 0.38

Brocade Communications Systems 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 0.38 0.38 0.37 0.36 0.36

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, Brocade Communications Systems 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)
=-0.05/244.786*244.786
=-0.050

Current CPI (Jul. 2017) = 244.786.

Brocade Communications Systems Inc Quarterly Data

per share eps CPI Adj_EPS
200710 0.080 208.936 0.094
200801 0.050 211.080 0.058
200804 0.230 214.823 0.262
200807 0.050 219.964 0.056
200810 0.090 216.573 0.102
200901 -0.060 211.143 -0.070
200904 -0.170 213.240 -0.195
200907 -0.060 215.351 -0.068
200910 0.090 216.177 0.102
201001 0.110 216.687 0.124
201004 0.050 218.009 0.056
201007 0.050 218.011 0.056
201010 0.040 218.711 0.045
201101 0.050 220.223 0.056
201104 0.050 224.906 0.054
201107 0.000 225.922 0.000
201110 -0.010 226.421 -0.011
201201 0.120 226.665 0.130
201204 0.080 230.085 0.085
201207 0.090 229.104 0.096
201210 0.110 231.317 0.116
201301 -0.050 230.280 -0.053
201304 0.100 232.531 0.105
201307 0.260 233.596 0.272
201310 0.140 233.546 0.147
201401 0.180 233.916 0.188
201404 -0.030 237.072 -0.031
201407 0.200 238.250 0.205
201410 0.190 237.433 0.196
201501 0.200 233.707 0.209
201504 0.180 236.599 0.186
201507 0.210 238.654 0.215
201510 0.200 237.838 0.206
201601 0.230 236.916 0.238
201604 0.110 239.261 0.113
201607 0.020 240.628 0.020
201610 0.160 241.729 0.162
201701 -0.010 242.839 -0.010
201704 -0.030 244.524 -0.030
201707 -0.050 244.786 -0.050

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.

Brocade Communications Systems Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=12.73/0.36
=35.36

* 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 Brocade Communications Systems Inc was 72.38. The lowest was 15.43. And the median was 35.57.


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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