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Campbell Soup Co  (NYSE:CPB) E10: $2.53 (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.

Campbell Soup Co's adjusted earnings per share data for the three months ended in Jul. 2017 was $1.040. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.53 for the trailing ten years ended in Jul. 2017.

As of today, Campbell Soup Co's current stock price is $45.97. Campbell Soup Co's E10 for the quarter that ended in Jul. 2017 was $2.53. Campbell Soup Co's Shiller PE Ratio of today is 18.17.

During the past 13 years, the highest Shiller PE Ratio of Campbell Soup Co was 27.39. The lowest was 12.25. And the median was 17.94.


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.

Campbell Soup Co Annual Data

Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.34 2.46 2.46 2.45 2.53

Campbell Soup Co 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 2.45 2.46 2.43 2.44 2.53

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, Campbell Soup Co'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)
=1.04/244.786*244.786
=1.040

Current CPI (Jul. 2017) = 244.786.

Campbell Soup Co Quarterly Data

per share eps CPI Adj_EPS
200710 0.700 208.936 0.820
200801 0.710 211.080 0.823
200804 1.400 214.823 1.595
200807 0.210 219.964 0.234
200810 0.700 216.573 0.791
200901 0.640 211.143 0.742
200904 0.490 213.240 0.562
200907 0.210 215.351 0.239
200910 0.870 216.177 0.985
201001 0.740 216.687 0.836
201004 0.490 218.009 0.550
201007 0.330 218.011 0.371
201010 0.820 218.711 0.918
201101 0.710 220.223 0.789
201104 0.570 224.906 0.620
201107 0.310 225.922 0.336
201110 0.820 226.421 0.887
201201 0.640 226.665 0.691
201204 0.550 230.085 0.585
201207 0.400 229.104 0.427
201210 0.780 231.317 0.825
201301 0.600 230.280 0.638
201304 0.570 232.531 0.600
201307 -0.500 233.596 -0.524
201310 0.540 233.546 0.566
201401 1.030 233.916 1.078
201404 0.580 237.072 0.599
201407 0.580 238.250 0.596
201410 0.780 237.433 0.804
201501 0.710 233.707 0.744
201504 0.570 236.599 0.590
201507 0.060 238.654 0.062
201510 0.620 237.838 0.638
201601 0.850 236.916 0.878
201604 0.590 239.261 0.604
201607 -0.260 240.628 -0.264
201610 0.940 241.729 0.952
201701 0.330 242.839 0.333
201704 0.580 244.524 0.581
201707 1.040 244.786 1.040

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.

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

Shiller PE Ratio=Share Price/E10
=45.97/2.53
=18.17

* 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 Campbell Soup Co was 27.39. The lowest was 12.25. And the median was 17.94.


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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