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CA Inc  (NAS:CA) E10: $1.86 (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.

CA Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.440. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.86 for the trailing ten years ended in Sep. 2017.

As of today, CA Inc's current stock price is $32.49. CA Inc's E10 for the quarter that ended in Sep. 2017 was $1.86. CA Inc's Shiller PE Ratio of today is 17.47.

During the past 13 years, the highest Shiller PE Ratio of CA Inc was 1177.00. The lowest was 16.91. And the median was 34.69.


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.

CA Inc Annual Data

Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.02 1.26 1.44 1.60 1.80

CA 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 1.70 1.74 1.80 1.83 1.86

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, CA 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)
=0.44/246.819*246.819
=0.440

Current CPI (Sep. 2017) = 246.819.

CA Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.310 210.036 0.364
200803 0.130 213.528 0.150
200806 0.370 218.815 0.417
200809 0.390 218.783 0.440
200812 0.390 210.228 0.458
200903 0.120 212.709 0.139
200906 0.370 215.693 0.423
200909 0.410 215.969 0.469
200912 0.490 215.949 0.560
201003 0.200 217.631 0.227
201006 0.420 217.965 0.476
201009 0.430 218.439 0.486
201012 0.390 219.179 0.439
201103 0.370 223.467 0.409
201106 0.470 225.722 0.514
201109 0.470 226.889 0.511
201112 0.540 225.672 0.591
201203 0.450 229.392 0.484
201206 0.510 229.478 0.549
201209 0.480 231.407 0.512
201212 0.550 229.601 0.591
201303 0.530 232.773 0.562
201306 0.730 233.504 0.772
201309 0.530 234.149 0.559
201312 0.510 233.049 0.540
201403 0.250 236.293 0.261
201406 0.490 238.343 0.507
201409 0.580 238.031 0.601
201412 0.500 234.812 0.526
201503 0.340 236.119 0.355
201506 0.480 238.638 0.496
201509 0.390 237.945 0.405
201512 0.530 236.525 0.553
201603 0.410 238.132 0.425
201606 0.470 241.018 0.481
201609 0.500 241.428 0.511
201612 0.500 241.432 0.511
201703 0.370 243.801 0.375
201706 0.420 244.955 0.423
201709 0.440 246.819 0.440

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.

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

Shiller PE Ratio=Share Price/E10
=32.49/1.86
=17.47

* 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 CA Inc was 1177.00. The lowest was 16.91. And the median was 34.69.


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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