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Salesforce.com Inc  (NYSE:CRM) E10: $0.13 (As of Apr. 2019)

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.

Salesforce.com Inc's adjusted earnings per share data for the three months ended in Apr. 2019 was $0.490. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.13 for the trailing ten years ended in Apr. 2019.

As of today, Salesforce.com Inc's current stock price is $155.67. Salesforce.com Inc's E10 for the quarter that ended in Apr. 2019 was $0.13. Salesforce.com Inc's Shiller PE Ratio of today is 1,197.46.

During the past 13 years, the highest Shiller PE Ratio of Salesforce.com Inc was 5301.00. The lowest was 1153.92. And the median was 3050.75.


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.

Salesforce.com Inc Annual Data

Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.09 -0.11 -0.07 -0.05 0.09

Salesforce.com Inc Quarterly Data

Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19
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 -0.01 0.03 0.04 0.09 0.13

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.


Salesforce.com Inc Distribution

* The bar in red indicates where Salesforce.com Inc's E10 falls into.



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, Salesforce.com Inc's adjusted earnings per share data for the three months ended in Apr. 2019 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Apr. 2019 (Change)*Current CPI (Apr. 2019)
=0.49/254.915*254.915
=0.490

Current CPI (Apr. 2019) = 254.915.

Salesforce.com Inc Quarterly Data

per share eps CPI Adj_EPS
200907 0.043 215.351 0.051
200910 0.040 216.177 0.047
201001 0.038 216.687 0.045
201004 0.033 218.009 0.039
201007 0.028 218.011 0.033
201010 0.038 218.711 0.044
201101 0.018 220.223 0.021
201104 0.000 224.906 0.000
201107 -0.008 225.922 -0.009
201110 -0.008 226.421 -0.009
201201 -0.005 226.665 -0.006
201204 -0.040 230.085 -0.044
201207 -0.020 229.104 -0.022
201210 -0.390 231.317 -0.430
201301 -0.035 230.280 -0.039
201304 -0.120 232.531 -0.132
201307 0.120 233.596 0.131
201310 -0.210 233.546 -0.229
201401 -0.190 233.916 -0.207
201404 -0.160 237.072 -0.172
201407 -0.100 238.250 -0.107
201410 -0.060 237.433 -0.064
201501 -0.100 233.707 -0.109
201504 0.010 236.599 0.011
201507 -0.001 238.654 -0.001
201510 -0.040 237.838 -0.043
201601 -0.040 236.916 -0.043
201604 0.060 239.261 0.064
201607 0.330 240.628 0.350
201610 -0.050 241.729 -0.053
201701 -0.070 242.839 -0.073
201704 0.001 244.524 0.001
201707 0.060 244.786 0.062
201710 0.140 246.663 0.145
201801 0.090 247.867 0.093
201804 0.460 250.546 0.468
201807 0.390 252.006 0.395
201810 0.130 252.885 0.131
201901 0.460 251.712 0.466
201904 0.490 254.915 0.490

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.

Salesforce.com Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=155.67/0.13
=1,197.46

* 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 Salesforce.com Inc was 5301.00. The lowest was 1153.92. And the median was 3050.75.


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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