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FirstCash Inc  (NYSE:FCFS) E10: $2.05 (As of Jun. 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.

FirstCash Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.320. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.05 for the trailing ten years ended in Jun. 2017.

As of today, FirstCash Inc's current stock price is $60.60. FirstCash Inc's E10 for the quarter that ended in Jun. 2017 was $2.05. FirstCash Inc's Shiller PE Ratio of today is 29.56.

During the past 13 years, the highest Shiller PE Ratio of FirstCash Inc was 57.49. The lowest was 13.19. And the median was 33.70.


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.

FirstCash 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 1.28 1.51 1.74 1.88 1.98

FirstCash Inc Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 1.95 1.92 1.98 2.03 2.05

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, FirstCash Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=0.32/244.955*244.955
=0.320

Current CPI (Jun. 2017) = 244.955.

FirstCash Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.320 208.490 0.376
200712 0.190 210.036 0.222
200803 0.220 213.528 0.252
200806 0.230 218.815 0.257
200809 -1.540 218.783 -1.724
200812 0.380 210.228 0.443
200903 0.380 212.709 0.438
200906 0.380 215.693 0.432
200909 0.390 215.969 0.442
200912 0.500 215.949 0.567
201003 0.390 217.631 0.439
201006 0.380 217.965 0.427
201009 0.460 218.439 0.516
201012 0.630 219.179 0.704
201103 0.700 223.467 0.767
201106 0.480 225.722 0.521
201109 0.590 226.889 0.637
201112 0.690 225.672 0.749
201203 0.580 229.392 0.619
201206 0.560 229.478 0.598
201209 0.640 231.407 0.677
201212 0.930 229.601 0.992
201303 0.680 232.773 0.716
201306 0.530 233.504 0.556
201309 0.790 234.149 0.826
201312 0.850 233.049 0.893
201403 0.770 236.293 0.798
201406 0.550 238.343 0.565
201409 0.680 238.031 0.700
201412 0.930 234.812 0.970
201503 0.590 236.119 0.612
201506 0.470 238.638 0.482
201509 0.400 237.945 0.412
201512 0.690 236.525 0.715
201603 0.470 238.132 0.483
201606 0.410 241.018 0.417
201609 -0.040 241.428 -0.041
201612 0.950 241.432 0.964
201703 0.670 243.801 0.673
201706 0.320 244.955 0.320

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.

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

Shiller PE Ratio=Share Price/E10
=60.60/2.05
=29.56

* 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 FirstCash Inc was 57.49. The lowest was 13.19. And the median was 33.70.


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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