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Flex Ltd  (NAS:FLEX) E10: $-0.44 (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.

Flex Ltd's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.380. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.44 for the trailing ten years ended in Sep. 2017.

As of today, Flex Ltd's current stock price is $19.09. Flex Ltd's E10 for the quarter that ended in Sep. 2017 was $-0.44. Flex Ltd's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Flex Ltd was 582.50. The lowest was 0.00. And the median was 370.67.


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.

Flex Ltd Annual Data

Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.63 -0.49 -0.46 -0.40 -0.45

Flex Ltd 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 -0.44 -0.44 -0.45 -0.45 -0.44

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, Flex Ltd'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)
=0.38/246.819*246.819
=0.380

Current CPI (Sep. 2017) = 246.819.

Flex Ltd Quarterly Data

per share eps CPI Adj_EPS
200712 -0.940 210.036 -1.105
200803 -0.090 213.528 -0.104
200806 0.140 218.815 0.158
200809 0.050 218.783 0.056
200812 -7.450 210.228 -8.747
200903 -0.330 212.709 -0.383
200906 -0.190 215.693 -0.217
200909 0.020 215.969 0.023
200912 0.110 215.949 0.126
201003 0.070 217.631 0.079
201006 0.140 217.965 0.159
201009 0.180 218.439 0.203
201012 0.260 219.179 0.293
201103 0.170 223.467 0.188
201106 0.170 225.722 0.186
201109 0.180 226.889 0.196
201112 0.140 225.672 0.153
201203 0.180 229.392 0.194
201206 0.190 229.478 0.204
201209 0.220 231.407 0.235
201212 0.070 229.601 0.075
201303 -0.070 232.773 -0.074
201306 0.090 233.504 0.095
201309 0.190 234.149 0.200
201312 0.230 233.049 0.244
201403 0.080 236.293 0.084
201406 0.290 238.343 0.300
201409 0.230 238.031 0.238
201412 0.260 234.812 0.273
201503 0.240 236.119 0.251
201506 0.190 238.638 0.197
201509 0.220 237.945 0.228
201512 0.270 236.525 0.282
201603 0.120 238.132 0.124
201606 0.190 241.018 0.195
201609 -0.005 241.428 -0.005
201612 0.240 241.432 0.245
201703 0.160 243.801 0.162
201706 0.230 244.955 0.232
201709 0.380 246.819 0.380

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.

Flex Ltd's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=19.09/-0.44
=

* 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 Flex Ltd was 582.50. The lowest was 0.00. And the median was 370.67.


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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