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Epiq Systems Inc  (NAS:EPIQ) E10: \$0.24 (As of Jun. 2016)

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.

Epiq Systems Inc's adjusted earnings per share data for the three months ended in Jun. 2016 was \$-0.150. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is \$0.24 for the trailing ten years ended in Jun. 2016.

As of today, Epiq Systems Inc's current stock price is \$16.49. Epiq Systems Inc's E10 for the quarter that ended in Jun. 2016 was \$0.24. Epiq Systems Inc's Shiller PE Ratio of today is 68.71.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Epiq Systems Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 E10 0.33 0.36 0.00 0.41 0.37

Epiq Systems Inc Quarterly Data

 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 E10 0.39 0.33 0.37 0.38 0.24

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, Epiq Systems Inc's adjusted earnings per share data for the three months ended in Jun. 2016 was:

 Adj_EPS = Earnings per Share (Diluted) / CPI of Jun. 2016 (Change) * Current CPI (Jun. 2016) = -0.15 / 241.018 * 241.018 = -0.150

Current CPI (Jun. 2016) = 241.018.

Epiq Systems Inc Quarterly Data

 per share eps CPI Adj_EPS 200609 0.090 202.900 0.107 200612 -0.070 201.800 -0.084 200703 0.000 205.352 0.000 200706 0.060 208.352 0.069 200709 0.070 208.490 0.081 200712 0.070 210.036 0.080 200803 0.070 213.528 0.079 200806 0.080 218.815 0.088 200809 0.100 218.783 0.110 200812 0.100 210.228 0.115 200903 0.090 212.709 0.102 200906 0.080 215.693 0.089 200909 0.120 215.969 0.134 200912 0.100 215.949 0.112 201003 0.060 217.631 0.066 201006 0.100 217.965 0.111 201009 0.120 218.439 0.132 201012 0.080 219.179 0.088 201103 0.080 223.467 0.086 201106 0.080 225.722 0.085 201109 0.120 226.889 0.127 201112 0.050 225.672 0.053 201203 0.060 229.392 0.063 201206 0.140 229.478 0.147 201209 0.310 231.407 0.323 201212 0.110 229.601 0.115 201303 0.110 232.773 0.114 201306 0.080 233.504 0.083 201309 0.110 234.149 0.113 201312 0.000 233.049 0.000 201403 -0.070 236.293 -0.071 201406 -0.100 238.343 -0.101 201409 0.140 238.031 0.142 201412 -0.020 234.812 -0.021 201503 0.050 236.119 0.051 201506 -0.090 238.638 -0.091 201509 -0.520 237.945 -0.527 201512 0.240 236.525 0.245 201603 -0.002 238.132 -0.002 201606 -0.150 241.018 -0.150

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.

Epiq Systems Inc's Shiller P/E Ratio of today is calculated as

 Shiller PE Ratio = Share Price / E10 = 16.49 / 0.24 = 68.71

* 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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