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Dean Foods Co  (NYSE:DF) E10: $0.10 (As of Sep. 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.

Dean Foods Co's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.020. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.10 for the trailing ten years ended in Sep. 2017.

As of today, Dean Foods Co's current stock price is $10.17. Dean Foods Co's E10 for the quarter that ended in Sep. 2017 was $0.10. Dean Foods Co's Shiller PE Ratio of today is 101.70.

During the past 13 years, the highest Shiller PE Ratio of Dean Foods Co was 166.64. The lowest was 2.49. And the median was 11.82.


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.

Dean Foods Co Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.09 1.40 0.99 0.51 0.26

Dean Foods Co Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 0.35 0.26 0.14 0.11 0.10

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, Dean Foods Co's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=0.02/246.819*246.819
=0.020

Current CPI (Sep. 2017) = 246.819.

Dean Foods Co Quarterly Data

per share eps CPI Adj_EPS
200712 0.480 210.036 0.564
200803 0.420 213.528 0.485
200806 0.620 218.815 0.699
200809 0.480 218.783 0.542
200812 0.860 210.228 1.010
200903 0.960 212.709 1.114
200906 0.760 215.693 0.870
200909 0.540 215.969 0.617
200912 0.540 215.949 0.617
201003 0.480 217.631 0.544
201006 0.500 217.965 0.566
201009 0.260 218.439 0.294
201012 -0.240 219.179 -0.270
201103 0.280 223.467 0.309
201106 -0.560 225.722 -0.612
201109 -16.780 226.889 -18.254
201112 -0.100 225.672 -0.109
201203 0.400 229.392 0.430
201206 0.600 229.478 0.645
201209 0.390 231.407 0.416
201212 0.290 229.601 0.312
201303 5.300 232.773 5.620
201306 -0.610 233.504 -0.645
201309 4.350 234.149 4.585
201312 -0.430 233.049 -0.455
201403 -0.090 236.293 -0.094
201406 -0.010 238.343 -0.010
201409 -0.170 238.031 -0.176
201412 0.050 234.812 0.053
201503 -0.780 236.119 -0.815
201506 0.280 238.638 0.290
201509 0.220 237.945 0.228
201512 0.200 236.525 0.209
201603 0.430 238.132 0.446
201606 0.360 241.018 0.369
201609 0.160 241.428 0.164
201612 0.360 241.432 0.368
201703 -0.110 243.801 -0.111
201706 0.190 244.955 0.191
201709 0.020 246.819 0.020

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.

Dean Foods Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=10.17/0.10
=101.70

* 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 Dean Foods Co was 166.64. The lowest was 2.49. And the median was 11.82.


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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