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Flowers Foods Inc  (NYSE:FLO) E10: $0.79 (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.

Flowers Foods Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.210. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.79 for the trailing ten years ended in Jun. 2017.

As of today, Flowers Foods Inc's current stock price is $18.70. Flowers Foods Inc's E10 for the quarter that ended in Jun. 2017 was $0.79. Flowers Foods Inc's Shiller PE Ratio of today is 23.67.

During the past 13 years, the highest Shiller PE Ratio of Flowers Foods Inc was 42.33. The lowest was 19.21. And the median was 31.89.


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.

Flowers Foods 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 0.49 0.59 0.65 0.71 0.76

Flowers Foods 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 0.76 0.76 0.76 0.78 0.79

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, Flowers Foods 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)
=0.21/244.955*244.955
=0.210

Current CPI (Jun. 2017) = 244.955.

Flowers Foods Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.107 208.490 0.126
200712 0.102 210.036 0.119
200803 0.173 213.528 0.198
200806 0.116 218.815 0.130
200809 0.129 218.783 0.144
200812 0.151 210.228 0.176
200903 0.178 212.709 0.205
200906 0.147 215.693 0.167
200909 0.151 215.969 0.171
200912 0.147 215.949 0.167
201003 0.196 217.631 0.221
201006 0.160 217.965 0.180
201009 0.153 218.439 0.172
201012 0.153 219.179 0.171
201103 0.200 223.467 0.219
201106 0.140 225.722 0.152
201109 0.153 226.889 0.165
201112 0.113 225.672 0.123
201203 0.187 229.392 0.200
201206 0.140 229.478 0.149
201209 0.150 231.407 0.159
201212 0.180 229.601 0.192
201303 0.530 232.773 0.558
201306 0.220 233.504 0.231
201309 0.160 234.149 0.167
201312 0.180 233.049 0.189
201403 0.290 236.293 0.301
201406 0.200 238.343 0.206
201409 0.210 238.031 0.216
201412 0.130 234.812 0.136
201503 0.290 236.119 0.301
201506 0.240 238.638 0.246
201509 0.210 237.945 0.216
201512 0.150 236.525 0.155
201603 0.280 238.132 0.288
201606 0.240 241.018 0.244
201609 0.190 241.428 0.193
201612 0.060 241.432 0.061
201703 0.290 243.801 0.291
201706 0.210 244.955 0.210

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.

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

Shiller PE Ratio=Share Price/E10
=18.70/0.79
=23.67

* 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 Flowers Foods Inc was 42.33. The lowest was 19.21. And the median was 31.89.


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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