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Conn's Inc  (NAS:CONN) E10: $0.90 (As of Jul. 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.

Conn's Inc's adjusted earnings per share data for the three months ended in Jul. 2017 was $0.140. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.90 for the trailing ten years ended in Jul. 2017.

As of today, Conn's Inc's current stock price is $28.95. Conn's Inc's E10 for the quarter that ended in Jul. 2017 was $0.90. Conn's Inc's Shiller PE Ratio of today is 32.17.

During the past 13 years, the highest Shiller PE Ratio of Conn's Inc was 63.62. The lowest was 6.44. And the median was 24.44.


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.

Conn's Inc Annual Data

Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.12 1.26 1.27 1.18 0.00

Conn's Inc Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 1.04 1.00 0.00 0.92 0.90

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

Adj_EPS= Earnings per Share (Diluted) /CPI of Jul. 2017 (Change)*Current CPI (Jul. 2017)
=0.14/244.786*244.786
=0.140

Current CPI (Jul. 2017) = 244.786.

Conn's Inc Quarterly Data

per share eps CPI Adj_EPS
200710 0.153 208.936 0.179
200801 0.514 211.080 0.596
200804 0.424 214.823 0.483
200807 0.406 219.964 0.452
200810 -0.316 216.573 -0.357
200901 1.047 211.143 1.214
200904 0.451 213.240 0.518
200907 0.208 215.351 0.236
200910 -0.577 216.177 -0.653
201001 0.080 216.687 0.090
201004 0.235 218.009 0.264
201007 0.060 218.011 0.067
201010 -0.190 218.711 -0.213
201101 -0.140 220.223 -0.156
201104 0.140 224.906 0.152
201107 -0.100 225.922 -0.108
201110 -0.400 226.421 -0.432
201201 0.240 226.665 0.259
201204 0.350 230.085 0.372
201207 0.350 229.104 0.374
201210 0.350 231.317 0.370
201301 0.510 230.280 0.542
201304 0.610 232.531 0.642
201307 0.520 233.596 0.545
201310 0.660 233.546 0.692
201401 0.750 233.916 0.785
201404 0.770 237.072 0.795
201407 0.480 238.250 0.493
201410 -0.080 237.433 -0.082
201501 0.420 233.707 0.440
201504 0.430 236.599 0.445
201507 0.450 238.654 0.462
201510 -0.070 237.838 -0.072
201601 0.060 236.916 0.062
201604 -0.320 239.261 -0.327
201607 -0.390 240.628 -0.397
201610 -0.120 241.729 -0.122
201701 0.000 242.839 0.000
201704 -0.080 244.524 -0.080
201707 0.140 244.786 0.140

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.

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

Shiller PE Ratio=Share Price/E10
=28.95/0.90
=32.17

* 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 Conn's Inc was 63.62. The lowest was 6.44. And the median was 24.44.


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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