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Constant Contact Inc  (NAS:CTCT) E10: $-0.58 (As of Sep. 2015)

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.

Constant Contact Inc's adjusted earnings per share data for the three months ended in Sep. 2015 was $0.190. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.58 for the trailing ten years ended in Sep. 2015.

As of today, Constant Contact Inc's current stock price is $32.01. Constant Contact Inc's E10 for the quarter that ended in Sep. 2015 was $-0.58. Constant Contact Inc's Shiller PE Ratio of today is .


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.

Constant Contact Inc Annual Data

Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 -0.85

Constant Contact Inc Quarterly Data

Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 -1.46 -0.85 -0.76 -0.68 -0.58

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, Constant Contact Inc's adjusted earnings per share data for the three months ended in Sep. 2015 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=0.19/237.945*237.945
=0.190

Current CPI (Sep. 2015) = 237.945.

Constant Contact Inc Quarterly Data

per share eps CPI Adj_EPS
200512 -0.620 196.800 -0.750
200603 -1.220 199.800 -1.453
200606 -0.600 202.900 -0.704
200609 -0.600 202.900 -0.704
200612 -2.600 201.800 -3.066
200703 -0.790 205.352 -0.915
200706 -0.810 208.352 -0.925
200709 -0.510 208.490 -0.582
200712 1.130 210.036 1.280
200803 0.010 213.528 0.011
200806 -0.010 218.815 -0.011
200809 -0.010 218.783 -0.011
200812 -0.050 210.228 -0.057
200903 -0.040 212.709 -0.045
200906 0.000 215.693 0.000
200909 0.050 215.969 0.055
200912 -0.060 215.949 -0.066
201003 -0.030 217.631 -0.033
201006 -0.030 217.965 -0.033
201009 0.100 218.439 0.109
201012 0.060 219.179 0.065
201103 -0.060 223.467 -0.064
201106 0.040 225.722 0.042
201109 0.180 226.889 0.189
201112 0.610 225.672 0.643
201203 0.010 229.392 0.010
201206 -0.020 229.478 -0.021
201209 0.210 231.407 0.216
201212 0.200 229.601 0.207
201303 -0.020 232.773 -0.020
201306 0.000 233.504 0.000
201309 0.110 234.149 0.112
201312 0.140 233.049 0.143
201403 0.030 236.293 0.030
201406 0.060 238.343 0.060
201409 0.160 238.031 0.160
201412 0.190 234.812 0.193
201503 0.110 236.119 0.111
201506 0.110 238.638 0.110
201509 0.190 237.945 0.190

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.

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

Shiller PE Ratio=Share Price/E10
=32.01/-0.58
=

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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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