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Clorox Co  (NYSE:CLX) E10: $4.57 (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.

Clorox Co's adjusted earnings per share data for the three months ended in Jun. 2017 was $1.520. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.57 for the trailing ten years ended in Jun. 2017.

As of today, Clorox Co's current stock price is $127.77. Clorox Co's E10 for the quarter that ended in Jun. 2017 was $4.57. Clorox Co's Shiller PE Ratio of today is 27.96.

During the past 13 years, the highest Shiller PE Ratio of Clorox Co was 31.88. The lowest was 15.59. And the median was 20.09.


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.

Clorox Co Annual Data

Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.28 4.47 4.15 4.34 4.57

Clorox Co 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 4.34 4.38 4.42 4.50 4.57

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, Clorox Co'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)
=1.52/244.955*244.955
=1.520

Current CPI (Jun. 2017) = 244.955.

Clorox Co Quarterly Data

per share eps CPI Adj_EPS
200709 0.760 208.490 0.893
200712 0.650 210.036 0.758
200803 0.710 213.528 0.814
200806 1.120 218.815 1.254
200809 0.900 218.783 1.008
200812 0.610 210.228 0.711
200903 1.080 212.709 1.244
200906 1.200 215.693 1.363
200909 1.110 215.969 1.259
200912 0.770 215.949 0.873
201003 1.160 217.631 1.306
201006 1.200 217.965 1.349
201009 1.520 218.439 1.705
201012 0.150 219.179 0.168
201103 1.090 223.467 1.195
201106 1.250 225.722 1.357
201109 0.980 226.889 1.058
201112 0.790 225.672 0.858
201203 1.010 229.392 1.079
201206 1.320 229.478 1.409
201209 1.010 231.407 1.069
201212 0.930 229.601 0.992
201303 1.000 232.773 1.052
201306 1.360 233.504 1.427
201309 1.030 234.149 1.078
201312 0.870 233.049 0.914
201403 1.040 236.293 1.078
201406 1.290 238.343 1.326
201409 0.680 238.031 0.700
201412 0.950 234.812 0.991
201503 1.300 236.119 1.349
201506 1.440 238.638 1.478
201509 1.310 237.945 1.349
201512 1.130 236.525 1.170
201603 1.230 238.132 1.265
201606 1.250 241.018 1.270
201609 1.360 241.428 1.380
201612 1.140 241.432 1.157
201703 1.310 243.801 1.316
201706 1.520 244.955 1.520

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.

Clorox Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=127.77/4.57
=27.96

* 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 Clorox Co was 31.88. The lowest was 15.59. And the median was 20.09.


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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