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Dollar Tree Inc  (NAS:DLTR) E10: $2.34 (As of Oct. 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.

Dollar Tree Inc's adjusted earnings per share data for the three months ended in Oct. 2017 was $1.010. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.34 for the trailing ten years ended in Oct. 2017.

As of today, Dollar Tree Inc's current stock price is $112.64. Dollar Tree Inc's E10 for the quarter that ended in Oct. 2017 was $2.34. Dollar Tree Inc's Shiller PE Ratio of today is 48.14.

During the past 13 years, the highest Shiller PE Ratio of Dollar Tree Inc was 54.09. The lowest was 14.27. And the median was 36.49.


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.

Dollar Tree 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 1.19 1.42 1.65 1.72 2.08

Dollar Tree 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 1.96 2.08 2.15 2.24 2.34

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, Dollar Tree Inc's adjusted earnings per share data for the three months ended in Oct. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Oct. 2017 (Change)*Current CPI (Oct. 2017)
=1.01/246.663*246.663
=1.010

Current CPI (Oct. 2017) = 246.663.

Dollar Tree Inc Quarterly Data

per share eps CPI Adj_EPS
200801 0.333 211.080 0.389
200804 0.160 214.823 0.184
200807 0.140 219.964 0.157
200810 0.157 216.573 0.179
200901 0.387 211.143 0.452
200904 0.220 213.240 0.254
200907 0.210 215.351 0.241
200910 0.255 216.177 0.291
201001 0.500 216.687 0.569
201004 0.245 218.009 0.277
201007 0.305 218.011 0.345
201010 0.365 218.711 0.412
201101 0.640 220.223 0.717
201104 0.410 224.906 0.450
201107 0.390 225.922 0.426
201110 0.430 226.421 0.468
201201 0.780 226.665 0.849
201204 0.500 230.085 0.536
201207 0.510 229.104 0.549
201210 0.680 231.317 0.725
201301 0.990 230.280 1.060
201304 0.590 232.531 0.626
201307 0.560 233.596 0.591
201310 0.580 233.546 0.613
201401 0.990 233.916 1.044
201404 0.670 237.072 0.697
201407 0.590 238.250 0.611
201410 0.640 237.433 0.665
201501 1.000 233.707 1.055
201504 0.340 236.599 0.354
201507 -0.460 238.654 -0.475
201510 0.350 237.838 0.363
201601 1.020 236.916 1.062
201604 0.980 239.261 1.010
201607 0.720 240.628 0.738
201610 0.720 241.729 0.735
201701 1.350 242.839 1.371
201704 0.850 244.524 0.857
201707 0.980 244.786 0.988
201710 1.010 246.663 1.010

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.

Dollar Tree Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=112.64/2.34
=48.14

* 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 Dollar Tree Inc was 54.09. The lowest was 14.27. And the median was 36.49.


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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