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Educational Development Corp  (NAS:EDUC) E10: $0.47 (As of Aug. 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.

Educational Development Corp's adjusted earnings per share data for the three months ended in Aug. 2017 was $0.250. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.47 for the trailing ten years ended in Aug. 2017.

As of today, Educational Development Corp's current stock price is $11.00. Educational Development Corp's E10 for the quarter that ended in Aug. 2017 was $0.47. Educational Development Corp's Shiller PE Ratio of today is 23.40.

During the past 13 years, the highest Shiller PE Ratio of Educational Development Corp was 37.07. The lowest was 4.91. And the median was 10.00.


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.

Educational Development Corp Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.56 0.51 0.45 0.43 0.44

Educational Development Corp Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
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 0.43 0.44 0.44 0.46 0.47

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, Educational Development Corp's adjusted earnings per share data for the three months ended in Aug. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2017 (Change)*Current CPI (Aug. 2017)
=0.25/245.519*245.519
=0.250

Current CPI (Aug. 2017) = 245.519.

Educational Development Corp Quarterly Data

per share eps CPI Adj_EPS
200711 0.230 210.177 0.269
200802 0.120 211.693 0.139
200805 0.130 216.632 0.147
200808 0.080 219.086 0.090
200811 0.170 212.425 0.196
200902 0.120 212.193 0.139
200905 0.110 213.856 0.126
200908 0.060 215.834 0.068
200911 0.240 216.330 0.272
201002 0.080 216.741 0.091
201005 0.050 218.178 0.056
201008 0.050 218.312 0.056
201011 0.200 218.803 0.224
201102 0.000 221.309 0.000
201105 0.080 225.964 0.087
201108 0.030 226.545 0.033
201111 0.190 226.230 0.206
201202 0.060 227.663 0.065
201205 0.090 229.815 0.096
201208 0.040 230.379 0.043
201211 0.130 230.221 0.139
201302 -0.060 232.166 -0.063
201305 0.020 232.945 0.021
201308 0.010 233.877 0.010
201311 0.140 233.069 0.147
201402 -0.080 234.781 -0.084
201405 0.060 237.900 0.062
201408 -0.001 237.852 -0.001
201411 0.130 236.151 0.135
201502 0.020 234.722 0.021
201505 0.080 237.805 0.083
201508 0.160 238.316 0.165
201511 0.310 237.336 0.321
201602 -0.030 237.111 -0.031
201605 0.150 240.229 0.153
201608 0.080 240.849 0.082
201611 0.310 241.353 0.315
201702 0.160 243.603 0.161
201705 0.300 244.733 0.301
201708 0.250 245.519 0.250

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.

Educational Development Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=11.00/0.47
=23.40

* 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 Educational Development Corp was 37.07. The lowest was 4.91. And the median was 10.00.


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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