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Diamond Foods Inc  (NAS:DMND) E10: $-1.17 (As of Oct. 2015)

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.

Diamond Foods Inc's adjusted earnings per share data for the three months ended in Oct. 2015 was $0.240. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-1.17 for the trailing ten years ended in Oct. 2015.

As of today, Diamond Foods Inc's current stock price is $37.56. Diamond Foods Inc's E10 for the quarter that ended in Oct. 2015 was $-1.17. Diamond Foods Inc's Shiller PE Ratio of today is .


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.

Diamond Foods Inc Annual Data

Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 -0.80 -1.16

Diamond Foods Inc Quarterly Data

Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15
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 -0.76 -0.69 -1.19 -1.16 -1.17

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, Diamond Foods Inc's adjusted earnings per share data for the three months ended in Oct. 2015 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Oct. 2015 (Change)*Current CPI (Oct. 2015)
=0.24/237.838*237.838
=0.240

Current CPI (Oct. 2015) = 237.838.

Diamond Foods Inc Quarterly Data

per share eps CPI Adj_EPS
200601 0.200 198.300 0.240
200604 -0.200 201.500 -0.236
200607 0.214 203.500 0.250
200610 0.610 201.800 0.719
200701 0.130 202.416 0.153
200704 -0.250 206.686 -0.288
200707 0.049 208.299 0.056
200710 0.520 208.936 0.592
200801 0.170 211.080 0.192
200804 0.070 214.823 0.077
200807 0.161 219.964 0.174
200810 0.640 216.573 0.703
200901 0.370 211.143 0.417
200904 0.160 213.240 0.178
200907 0.256 215.351 0.283
200910 0.880 216.177 0.968
201001 0.520 216.687 0.571
201004 -0.220 218.009 -0.240
201007 -0.177 218.011 -0.193
201010 0.420 218.711 0.457
201101 0.490 220.223 0.529
201104 0.150 224.906 0.159
201107 0.126 225.922 0.133
201110 0.470 226.421 0.494
201201 -0.930 226.665 -0.976
201204 -2.020 230.085 -2.088
201207 -1.515 229.104 -1.573
201210 -0.490 231.317 -0.504
201301 -0.370 230.280 -0.382
201304 -0.710 232.531 -0.726
201307 -6.555 233.596 -6.674
201310 -1.920 233.546 -1.955
201401 -0.680 233.916 -0.691
201404 -3.630 237.072 -3.642
201407 -0.060 238.250 -0.060
201410 0.240 237.433 0.240
201501 0.350 233.707 0.356
201504 0.200 236.599 0.201
201507 0.246 238.654 0.245
201510 0.240 237.838 0.240

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.

Diamond Foods Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=37.56/-1.17
=

* 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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