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Capella Education Co  (NAS:CPLA) E10: $3.15 (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.

Capella Education Co's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.900. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.15 for the trailing ten years ended in Jun. 2017.

As of today, Capella Education Co's current stock price is $68.25. Capella Education Co's E10 for the quarter that ended in Jun. 2017 was $3.15. Capella Education Co's Shiller PE Ratio of today is 21.67.

During the past 13 years, the highest Shiller PE Ratio of Capella Education Co was 31.14. The lowest was 15.41. And the median was 24.31.


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.

Capella Education Co Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 2.31 2.43 2.68 2.97

Capella Education 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 2.85 2.92 2.97 3.06 3.15

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, Capella Education 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)
=0.9/244.955*244.955
=0.900

Current CPI (Jun. 2017) = 244.955.

Capella Education Co Quarterly Data

per share eps CPI Adj_EPS
200709 0.290 208.490 0.341
200712 0.530 210.036 0.618
200803 0.310 213.528 0.356
200806 0.370 218.815 0.414
200809 0.340 218.783 0.381
200812 0.650 210.228 0.757
200903 0.490 212.709 0.564
200906 0.560 215.693 0.636
200909 0.570 215.969 0.647
200912 0.890 215.949 1.010
201003 0.890 217.631 1.002
201006 0.860 217.965 0.966
201009 0.800 218.439 0.897
201012 1.090 219.179 1.218
201103 0.900 223.467 0.987
201106 0.990 225.722 1.074
201109 0.660 226.889 0.713
201112 0.840 225.672 0.912
201203 0.820 229.392 0.876
201206 0.850 229.478 0.907
201209 0.390 231.407 0.413
201212 0.690 229.601 0.736
201303 0.700 232.773 0.737
201306 0.830 233.504 0.871
201309 0.480 234.149 0.502
201312 0.790 233.049 0.830
201403 0.700 236.293 0.726
201406 0.720 238.343 0.740
201409 0.620 238.031 0.638
201412 0.990 234.812 1.033
201503 0.800 236.119 0.830
201506 0.830 238.638 0.852
201509 0.670 237.945 0.690
201512 0.960 236.525 0.994
201603 0.780 238.132 0.802
201606 0.820 241.018 0.833
201609 1.060 241.428 1.075
201612 0.960 241.432 0.974
201703 0.940 243.801 0.944
201706 0.900 244.955 0.900

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.

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

Shiller PE Ratio=Share Price/E10
=68.25/3.15
=21.67

* 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 Capella Education Co was 31.14. The lowest was 15.41. And the median was 24.31.


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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