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Cabela's Inc  (NYSE:CAB) E10: $2.19 (As of Jun. 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.

Cabela's Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.410. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.19 for the trailing ten years ended in Jun. 2017.

As of today, Cabela's Inc's current stock price is $61.50. Cabela's Inc's E10 for the quarter that ended in Jun. 2017 was $2.19. Cabela's Inc's Shiller PE Ratio of today is 28.08.

During the past 13 years, the highest Shiller PE Ratio of Cabela's Inc was 45.46. The lowest was 16.88. And the median was 28.43.


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.

Cabela's 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 1.59 1.71 1.86 2.01 2.11

Cabela's Inc Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 2.11 2.12 2.11 2.14 2.19

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, Cabela's Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=0.41/244.955*244.955
=0.410

Current CPI (Jun. 2017) = 244.955.

Cabela's Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.200 208.490 0.235
200712 0.840 210.036 0.980
200803 0.150 213.528 0.172
200806 0.110 218.815 0.123
200809 0.150 218.783 0.168
200812 0.740 210.228 0.862
200903 0.080 212.709 0.092
200906 0.140 215.693 0.159
200909 0.280 215.969 0.318
200912 0.250 215.949 0.284
201003 0.120 217.631 0.135
201006 0.260 217.965 0.292
201009 0.290 218.439 0.325
201012 0.950 219.179 1.062
201103 0.250 223.467 0.274
201106 0.310 225.722 0.336
201109 0.470 226.889 0.507
201112 0.980 225.672 1.064
201203 0.400 229.392 0.427
201206 0.470 229.478 0.502
201209 0.600 231.407 0.635
201212 0.950 229.601 1.014
201303 0.700 232.773 0.737
201306 0.620 233.504 0.650
201309 0.700 234.149 0.732
201312 1.120 233.049 1.177
201403 0.360 236.293 0.373
201406 0.610 238.343 0.627
201409 0.750 238.031 0.772
201412 1.100 234.812 1.148
201503 0.370 236.119 0.384
201506 0.560 238.638 0.575
201509 0.620 237.945 0.638
201512 1.130 236.525 1.170
201603 0.330 238.132 0.339
201606 0.550 241.018 0.559
201609 0.410 241.428 0.416
201612 0.840 241.432 0.852
201703 0.280 243.801 0.281
201706 0.410 244.955 0.410

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.

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

Shiller PE Ratio=Share Price/E10
=61.50/2.19
=28.08

* 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 Cabela's Inc was 45.46. The lowest was 16.88. And the median was 28.43.


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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