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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.

* Premium members only.

Delhaize Group SA Annual Data

Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 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 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 1.07 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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