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First Solar Inc  (NAS:FSLR) E10: $3.37 (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.

First Solar Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.950. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.37 for the trailing ten years ended in Sep. 2017.

As of today, First Solar Inc's current stock price is $68.48. First Solar Inc's E10 for the quarter that ended in Sep. 2017 was $3.37. First Solar Inc's Shiller PE Ratio of today is 20.32.

During the past 13 years, the highest Shiller PE Ratio of First Solar Inc was 28.00. The lowest was 7.51. And the median was 16.73.


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.

First Solar 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 0.00 2.45 2.92 3.49 3.19

First Solar Inc 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 3.89 3.19 3.23 3.21 3.37

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, First Solar Inc'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)
=1.95/246.819*246.819
=1.950

Current CPI (Sep. 2017) = 246.819.

First Solar Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.790 210.036 0.928
200803 0.570 213.528 0.659
200806 0.850 218.815 0.959
200809 1.200 218.783 1.354
200812 1.610 210.228 1.890
200903 1.990 212.709 2.309
200906 2.110 215.693 2.414
200909 1.790 215.969 2.046
200912 1.650 215.949 1.886
201003 2.000 217.631 2.268
201006 1.840 217.965 2.084
201009 2.040 218.439 2.305
201012 1.800 219.179 2.027
201103 1.330 223.467 1.469
201106 0.700 225.722 0.765
201109 2.250 226.889 2.448
201112 -4.810 225.672 -5.261
201203 -5.200 229.392 -5.595
201206 1.270 229.478 1.366
201209 1.000 231.407 1.067
201212 1.780 229.601 1.913
201303 0.660 232.773 0.700
201306 0.370 233.504 0.391
201309 1.940 234.149 2.045
201312 0.590 233.049 0.625
201403 1.100 236.293 1.149
201406 0.040 238.343 0.041
201409 0.890 238.031 0.923
201412 1.910 234.812 2.008
201503 -0.610 236.119 -0.638
201506 0.920 238.638 0.952
201509 3.410 237.945 3.537
201512 1.620 236.525 1.691
201603 1.900 238.132 1.969
201606 -0.110 241.018 -0.113
201609 1.450 241.428 1.482
201612 -6.750 241.432 -6.901
201703 0.090 243.801 0.091
201706 0.500 244.955 0.504
201709 1.950 246.819 1.950

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.

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

Shiller PE Ratio=Share Price/E10
=68.48/3.37
=20.32

* 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 First Solar Inc was 28.00. The lowest was 7.51. And the median was 16.73.


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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