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RadioShack (FRA:TAN) E10 : €0.04 (As of Dec. 2013)


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What is RadioShack E10?

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.

RadioShack's adjusted earnings per share data for the fiscal year that ended in Dec. 2013 was €-2.898. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €0.04 for the trailing ten years ended in Dec. 2013.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

As of today (2024-06-12), RadioShack's current stock price is € 0.15. RadioShack's E10 for the fiscal year that ended in Dec. 2013 was €0.04. RadioShack's Shiller PE Ratio of today is 3.75.


RadioShack E10 Historical Data

The historical data trend for RadioShack's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

RadioShack E10 Chart

RadioShack Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.15 1.15 1.09 0.78 0.04

RadioShack Semi-Annual Data
Dec95 Dec96 Dec97 Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
E10 Get a 7-Day Free Trial 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 1.15 1.15 1.09 0.85 0.07

Competitive Comparison of RadioShack's E10

For the Specialty Retail subindustry, RadioShack's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


RadioShack's Shiller PE Ratio Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, RadioShack's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where RadioShack's Shiller PE Ratio falls into.



RadioShack E10 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.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, RadioShack's adjusted earnings per share data for the fiscal year that ended in Dec. 2013 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Dec. 2013 (Change)*Current CPI (Dec. 2013)
=-2.898/98.3259*98.3259
=-2.898

Current CPI (Dec. 2013) = 98.3259.

RadioShack Annual Data

per_share_eps CPI Adj_EPS
200412 1.552 80.290 1.901
200512 1.509 83.032 1.787
200612 0.409 85.142 0.472
200712 1.195 88.616 1.326
200812 1.088 88.697 1.206
200912 1.118 91.111 1.207
201012 1.270 92.474 1.350
201112 0.532 95.213 0.549
201212 -1.059 96.871 -1.075
201312 -2.898 98.326 -2.898

Add all the adjusted EPS together and divide 10 will get our e10.


RadioShack  (FRA:TAN) 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.

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

Shiller PE Ratio=Share Price/E10
=0.15/0.04
=3.75

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


RadioShack E10 Related Terms

Thank you for viewing the detailed overview of RadioShack's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


RadioShack (FRA:TAN) Business Description

Traded in Other Exchanges
N/A
Address
RS Legacy Corp, formerly RadioShack Corp was incorporated in 1967. The Company, along with its subsidiaries, is primarily engaged in the retail sale of consumer electronics goods and services through its RadioShack store chain. At December 31, 2013, it operated 4,297 U.S. company-operated stores under the RadioShack brand located throughout the United States, as well as in Puerto Rico and the U.S. Virgin Islands. These stores are located in strip centers and shopping malls, as well as individual storefronts. Each location carries a broad assortment of both name brand and private brand consumer electronics products. The Company's product lines are categorized into two platforms; namely mobility and retail. Its mobility platform includes postpaid and prepaid wireless handsets, commissions, residual income, prepaid wireless airtime, tablet devices, and e-readers. The retail platform includes remaining consumer electronics product categories and related accessories; batteries and power products; and technical products. The Company has other sales channels and support operations such as: Dealer Outlets, RadioShack de Mexico, RadioShack.com, Distribution Centers, RadioShack Technology Services and RadioShack Global Sourcing. The Company owns or is licensed to use many trademarks and service marks related to its RadioShack stores in the United States and in foreign countries. Its private brand manufactured products are sold under the RadioShack, AUVIO, Enercell and Gigaware trademark. It also owns patents and patent applications relating to consumer electronics products. The Company competes in the sale of its products and services with several retail formats, including national, regional, and independent consumer electronics retailers. It competes with department and specialty retail stores in certain product categories. It competes with wireless providers in mobility platform through their own retail and online presence. It also competes with big-box retailers, discount and warehouse retailers, and Internet retailers. The Company is subject to foreign, federal, state, and local laws and regulations including, but not limited to, the Fair Labor Standards Act and ERISA, each as amended, and regulations promulgated by the Federal Trade Commission, SEC, Internal Revenue Service, Department of Labor, Occupational Safety and Health Administration, and Environmental Protection Agency.

RadioShack (FRA:TAN) Headlines

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