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Edgewater Technology Inc  (NAS:EDGW) E10: $-0.36 (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.

Edgewater Technology Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $-0.010. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.36 for the trailing ten years ended in Sep. 2017.

As of today, Edgewater Technology Inc's current stock price is $6.21. Edgewater Technology Inc's E10 for the quarter that ended in Sep. 2017 was $-0.36. Edgewater Technology Inc's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Edgewater Technology Inc was 232.03. The lowest was 0.00. And the median was 58.46.


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.

Edgewater Technology Inc 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 -0.50 -0.22 -0.18 -0.24 -0.30

Edgewater Technology Inc 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 -0.26 -0.30 -0.33 -0.35 -0.36

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, Edgewater Technology Inc'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)
=-0.01/246.819*246.819
=-0.010

Current CPI (Sep. 2017) = 246.819.

Edgewater Technology Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.430 210.036 0.505
200803 0.020 213.528 0.023
200806 -1.520 218.815 -1.715
200809 0.060 218.783 0.068
200812 -2.200 210.228 -2.583
200903 -0.040 212.709 -0.046
200906 -0.110 215.693 -0.126
200909 -0.020 215.969 -0.023
200912 -0.160 215.949 -0.183
201003 -0.050 217.631 -0.057
201006 -0.010 217.965 -0.011
201009 -1.860 218.439 -2.102
201012 -0.010 219.179 -0.011
201103 0.030 223.467 0.033
201106 0.030 225.722 0.033
201109 0.130 226.889 0.141
201112 -0.150 225.672 -0.164
201203 0.020 229.392 0.022
201206 0.010 229.478 0.011
201209 0.070 231.407 0.075
201212 0.030 229.601 0.032
201303 -0.080 232.773 -0.085
201306 0.120 233.504 0.127
201309 0.140 234.149 0.148
201312 2.690 233.049 2.849
201403 0.060 236.293 0.063
201406 0.130 238.343 0.135
201409 0.080 238.031 0.083
201412 0.050 234.812 0.053
201503 -0.080 236.119 -0.084
201506 0.040 238.638 0.041
201509 0.080 237.945 0.083
201512 -0.400 236.525 -0.417
201603 -0.060 238.132 -0.062
201606 0.090 241.018 0.092
201609 0.003 241.428 0.003
201612 -0.280 241.432 -0.286
201703 -0.210 243.801 -0.213
201706 -0.060 244.955 -0.060
201709 -0.010 246.819 -0.010

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.

Edgewater Technology Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=6.21/-0.36
=

* 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 Edgewater Technology Inc was 232.03. The lowest was 0.00. And the median was 58.46.


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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