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Dick's Sporting Goods Inc  (NYSE:DKS) E10: $2.12 (As of Jul. 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.

Dick's Sporting Goods Inc's adjusted earnings per share data for the three months ended in Jul. 2017 was $1.030. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.12 for the trailing ten years ended in Jul. 2017.

As of today, Dick's Sporting Goods Inc's current stock price is $28.38. Dick's Sporting Goods Inc's E10 for the quarter that ended in Jul. 2017 was $2.12. Dick's Sporting Goods Inc's Shiller PE Ratio of today is 13.39.

During the past 13 years, the highest Shiller PE Ratio of Dick's Sporting Goods Inc was 55.16. The lowest was 11.44. And the median was 33.89.


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.

Dick's Sporting Goods Inc Annual Data

Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.16 1.39 1.59 1.81 2.00

Dick's Sporting Goods Inc Quarterly Data

Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17
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 1.97 2.00 2.05 2.12 2.14

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, Dick's Sporting Goods Inc's adjusted earnings per share data for the three months ended in Jul. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jul. 2017 (Change)*Current CPI (Jul. 2017)
=1.03/244.786*244.786
=1.030

Current CPI (Jul. 2017) = 244.786.

Dick's Sporting Goods Inc Quarterly Data

per share eps CPI Adj_EPS
200710 0.100 208.936 0.117
200801 0.620 211.080 0.719
200804 0.170 214.823 0.194
200807 0.350 219.964 0.389
200810 0.050 216.573 0.057
200901 -0.950 211.143 -1.101
200904 0.090 213.240 0.103
200907 0.330 215.351 0.375
200910 0.160 216.177 0.181
201001 0.570 216.687 0.644
201004 0.220 218.009 0.247
201007 0.430 218.011 0.483
201010 0.140 218.711 0.157
201101 0.720 220.223 0.800
201104 0.300 224.906 0.327
201107 0.590 225.922 0.639
201110 0.330 226.421 0.357
201201 0.880 226.665 0.950
201204 0.450 230.085 0.479
201207 0.430 229.104 0.459
201210 0.400 231.317 0.423
201301 1.030 230.280 1.095
201304 0.520 232.531 0.547
201307 0.670 233.596 0.702
201310 0.400 233.546 0.419
201401 1.110 233.916 1.162
201404 0.570 237.072 0.589
201407 0.570 238.250 0.586
201410 0.410 237.433 0.423
201501 1.290 233.707 1.351
201504 0.530 236.599 0.548
201507 0.770 238.654 0.790
201510 0.410 237.838 0.422
201601 1.120 236.916 1.157
201604 0.500 239.261 0.512
201607 0.820 240.628 0.834
201610 0.440 241.729 0.446
201701 0.810 242.839 0.816
201704 0.520 244.524 0.521
201707 1.030 244.786 1.030

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.

Dick's Sporting Goods Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=28.38/2.12
=13.39

* 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 Dick's Sporting Goods Inc was 55.16. The lowest was 11.44. And the median was 33.89.


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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