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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 \$130.12. Clorox Co's E10 for the quarter that ended in Jun. 2017 was \$4.57. Clorox Co's Shiller PE Ratio of today is 28.47.

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.

Clorox Co Annual Data

 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 E10 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 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 = 130.12 / 4.57 = 28.47

* 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 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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