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Delhaize Group SA  (NYSE:DEG) E10: \$1.10 (As of Mar. 2016)

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.

Delhaize Group SA's adjusted earnings per share data for the three months ended in Mar. 2016 was \$0.290. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is \$1.10 for the trailing ten years ended in Mar. 2016.

As of today, Delhaize Group SA's current stock price is \$28.11. Delhaize Group SA's E10 for the quarter that ended in Mar. 2016 was \$1.10. Delhaize Group SA's Shiller PE Ratio of today is 25.55.

Historical Data

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

Delhaize Group SA Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 E10 1.47 1.50 1.46 1.21 1.06

Delhaize Group SA Quarterly Data

 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 E10 1.07 1.13 1.13 1.06 1.10

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, Delhaize Group SA's adjusted earnings per share data for the three months ended in Mar. 2016 was:

 Adj_EPS = Earnings per Share (Diluted) / CPI of Mar. 2016 (Change) * Current CPI (Mar. 2016) = 0.289532293987 / 238.132 * 238.132 = 0.290

Current CPI (Mar. 2016) = 238.132.

Delhaize Group SA Quarterly Data

 per share eps CPI Adj_EPS 200606 0.304 202.900 0.357 200609 0.149 202.900 0.175 200612 0.379 201.800 0.447 200703 0.367 205.352 0.425 200706 0.271 208.352 0.310 200709 0.350 208.490 0.400 200712 0.408 210.036 0.462 200803 0.388 213.528 0.433 200806 0.876 218.815 0.953 200809 0.352 218.783 0.383 200812 0.497 210.228 0.563 200903 0.402 212.709 0.450 200906 0.434 215.693 0.479 200909 0.464 215.969 0.511 200912 0.485 215.949 0.535 201003 0.434 217.631 0.475 201006 0.346 217.965 0.378 201009 0.456 218.439 0.497 201012 0.622 219.179 0.675 201103 0.435 223.467 0.463 201106 0.415 225.722 0.438 201109 0.451 226.889 0.474 201112 0.313 225.672 0.330 201203 -0.007 229.392 -0.007 201206 0.270 229.478 0.280 201209 0.603 231.407 0.621 201212 -0.549 229.601 -0.569 201303 0.162 232.773 0.166 201306 0.343 233.504 0.350 201309 -0.267 234.149 -0.272 201312 0.349 233.049 0.357 201403 0.270 236.293 0.272 201406 -0.149 238.343 -0.149 201409 0.345 238.031 0.346 201412 -0.166 234.812 -0.169 201503 0.074 236.119 0.074 201506 0.286 238.638 0.286 201509 0.320 237.945 0.320 201512 0.300 236.525 0.302 201603 0.290 238.132 0.290

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.

Delhaize Group SA's Shiller P/E Ratio of today is calculated as

 Shiller PE Ratio = Share Price / E10 = 28.11 / 1.10 = 25.55

* 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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