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Alphabet Inc  (NAS:GOOGL) E10: $22.96 (As of Mar. 2019)

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.

Alphabet Inc's adjusted earnings per share data for the three months ended in Mar. 2019 was $9.500. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $22.96 for the trailing ten years ended in Mar. 2019.

As of today, Alphabet Inc's current stock price is $1116.70. Alphabet Inc's E10 for the quarter that ended in Mar. 2019 was $22.96. Alphabet Inc's Shiller PE Ratio of today is 48.64.

During the past 13 years, the highest Shiller PE Ratio of Alphabet Inc was 66.31. The lowest was 41.59. And the median was 51.26.


Alphabet Inc  (NAS:GOOGL) E10 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.

Alphabet Inc Annual Data

Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.04 14.12 16.58 17.91 21.84

Alphabet Inc Quarterly Data

Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
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 19.35 19.77 20.84 21.84 22.96

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.


Alphabet Inc  (NAS:GOOGL) E10 Distribution

* The bar in red indicates where Alphabet Inc's E10 falls into.



Alphabet Inc  (NAS:GOOGL) 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.

For example, Alphabet Inc's adjusted earnings per share data for the three months ended in Mar. 2019 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2019 (Change)*Current CPI (Mar. 2019)
=9.5/254.202*254.202
=9.500

Current CPI (Mar. 2019) = 254.202.

Alphabet Inc Quarterly Data

per share eps CPI Adj_EPS
200906 2.332 215.693 2.748
200909 2.567 215.969 3.021
200912 3.073 215.949 3.617
201003 3.033 217.631 3.543
201006 2.858 217.965 3.333
201009 3.363 218.439 3.914
201012 3.909 219.179 4.534
201103 2.758 223.467 3.137
201106 3.844 225.722 4.329
201109 4.169 226.889 4.671
201112 4.119 225.672 4.640
201203 4.379 229.392 4.853
201206 4.214 229.478 4.668
201209 3.268 231.407 3.590
201212 4.314 229.601 4.776
201303 4.975 232.773 5.433
201306 4.770 233.504 5.193
201309 4.380 234.149 4.755
201312 4.955 233.049 5.405
201403 5.040 236.293 5.422
201406 4.880 238.343 5.205
201409 3.980 238.031 4.250
201412 6.910 234.812 7.481
201503 5.100 236.119 5.491
201506 4.930 238.638 5.252
201509 5.730 237.945 6.121
201512 7.060 236.525 7.588
201603 6.020 238.132 6.426
201606 7.000 241.018 7.383
201609 7.250 241.428 7.634
201612 7.560 241.432 7.960
201703 7.730 243.801 8.060
201706 5.010 244.955 5.199
201709 9.570 246.819 9.856
201712 -4.350 246.524 -4.485
201803 13.330 249.554 13.578
201806 4.540 251.989 4.580
201809 13.060 252.439 13.151
201812 12.770 251.233 12.921
201903 9.500 254.202 9.500

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


Alphabet Inc  (NAS:GOOGL) 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.

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

Shiller PE Ratio=Share Price/E10
=1116.70/22.96
=48.64

* 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 Alphabet Inc was 66.31. The lowest was 41.59. And the median was 51.26.


Be Aware

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


Alphabet Inc  (NAS:GOOGL) E10 Related Terms

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