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NTT DOCOMO Inc  (NYSE:DCM) E10: $1.20 (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.

NTT DOCOMO Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.462. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.20 for the trailing ten years ended in Jun. 2017.

As of today, NTT DOCOMO Inc's current stock price is $23.58. NTT DOCOMO Inc's E10 for the quarter that ended in Jun. 2017 was $1.20. NTT DOCOMO Inc's Shiller PE Ratio of today is 19.65.

During the past 13 years, the highest Shiller PE Ratio of NTT DOCOMO Inc was 22.99. The lowest was 8.33. And the median was 13.30.


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.

NTT DOCOMO Inc Annual Data

Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.43 1.30 1.04 1.10 1.18

NTT DOCOMO Inc 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 1.23 1.26 1.11 1.18 1.20

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, NTT DOCOMO Inc'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)
=0.462249614792/244.955*244.955
=0.462

Current CPI (Jun. 2017) = 244.955.

NTT DOCOMO Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.249 208.490 0.293
200712 0.268 210.036 0.313
200803 0.263 213.528 0.302
200806 0.382 218.815 0.427
200809 0.384 218.783 0.430
200812 0.236 210.228 0.275
200903 0.085 212.709 0.098
200906 0.365 215.693 0.415
200909 0.360 215.969 0.409
200912 0.359 215.949 0.407
201003 0.200 217.631 0.225
201006 0.376 217.965 0.423
201009 0.478 218.439 0.535
201012 0.387 219.179 0.433
201103 0.138 223.467 0.151
201106 0.476 225.722 0.517
201109 0.440 226.889 0.476
201112 0.296 225.672 0.322
201203 0.203 229.392 0.216
201206 0.500 229.478 0.533
201209 0.375 231.407 0.397
201212 0.376 229.601 0.401
201303 0.190 232.773 0.200
201306 0.392 233.504 0.411
201309 0.346 234.149 0.362
201312 0.303 233.049 0.318
201403 0.081 236.293 0.084
201406 0.322 238.343 0.331
201409 0.277 238.031 0.285
201412 0.259 234.812 0.270
201503 0.066 236.119 0.069
201506 0.351 238.638 0.361
201509 0.318 237.945 0.327
201512 0.371 236.525 0.385
201603 0.128 238.132 0.131
201606 0.523 241.018 0.532
201609 0.523 241.428 0.530
201612 0.427 241.432 0.433
201703 0.153 243.801 0.153
201706 0.462 244.955 0.462

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.

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

Shiller PE Ratio=Share Price/E10
=23.58/1.20
=19.65

* 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 NTT DOCOMO Inc was 22.99. The lowest was 8.33. And the median was 13.30.


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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