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Carnival Corp  (NYSE:CCL) E10: $2.56 (As of Aug. 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.

Carnival Corp's adjusted earnings per share data for the three months ended in Aug. 2017 was $1.830. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.56 for the trailing ten years ended in Aug. 2017.

As of today, Carnival Corp's current stock price is $65.88. Carnival Corp's E10 for the quarter that ended in Aug. 2017 was $2.56. Carnival Corp's Shiller PE Ratio of today is 25.73.

During the past 13 years, the highest Shiller PE Ratio of Carnival Corp was 27.00. The lowest was 6.60. And the median was 15.42.


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.

Carnival Corp Annual Data

Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Nov14 Nov15 Nov16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.64 2.61 2.53 2.43 2.52

Carnival Corp Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
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 2.50 2.52 2.55 2.57 2.56

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, Carnival Corp's adjusted earnings per share data for the three months ended in Aug. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2017 (Change)*Current CPI (Aug. 2017)
=1.83/245.519*245.519
=1.830

Current CPI (Aug. 2017) = 245.519.

Carnival Corp Quarterly Data

per share eps CPI Adj_EPS
200711 0.440 210.177 0.514
200802 0.300 211.693 0.348
200805 0.490 216.632 0.555
200808 1.650 219.086 1.849
200811 0.470 212.425 0.543
200902 0.330 212.193 0.382
200905 0.330 213.856 0.379
200908 1.330 215.834 1.513
200911 0.240 216.330 0.272
201002 0.220 216.741 0.249
201005 0.320 218.178 0.360
201008 1.620 218.312 1.822
201011 0.310 218.803 0.348
201102 0.190 221.309 0.211
201105 0.260 225.964 0.283
201108 1.690 226.545 1.832
201111 0.280 226.230 0.304
201202 -0.180 227.663 -0.194
201205 0.020 229.815 0.021
201208 1.710 230.379 1.822
201211 0.120 230.221 0.128
201302 0.050 232.166 0.053
201305 0.050 232.945 0.053
201308 1.200 233.877 1.260
201311 0.050 233.069 0.053
201402 -0.030 234.781 -0.031
201405 0.130 237.900 0.134
201408 1.600 237.852 1.652
201411 -0.140 236.151 -0.146
201502 0.060 234.722 0.063
201505 0.290 237.805 0.299
201508 1.560 238.316 1.607
201511 0.350 237.336 0.362
201602 0.180 237.111 0.186
201605 0.800 240.229 0.818
201608 1.930 240.849 1.967
201611 0.840 241.353 0.854
201702 0.480 243.603 0.484
201705 0.520 244.733 0.522
201708 1.830 245.519 1.830

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.

Carnival Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=65.88/2.56
=25.73

* 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 Carnival Corp was 27.00. The lowest was 6.60. And the median was 15.42.


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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