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Heartland Payment Systems Inc  (NYSE:HPY) E10: $1.06 (As of Dec. 2015)

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.

Heartland Payment Systems Inc's adjusted earnings per share data for the three months ended in Dec. 2015 was $0.607. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.06 for the trailing ten years ended in Dec. 2015.

As of today, Heartland Payment Systems Inc's current stock price is $103.09. Heartland Payment Systems Inc's E10 for the quarter that ended in Dec. 2015 was $1.06. Heartland Payment Systems Inc's Shiller PE Ratio of today is 97.25.


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.

Heartland Payment Systems Inc Annual Data

Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.82 0.89 1.06

Heartland Payment Systems Inc Quarterly Data

Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 0.89 0.93 0.98 1.02 1.06

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, Heartland Payment Systems Inc's adjusted earnings per share data for the three months ended in Dec. 2015 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2015 (Change)*Current CPI (Dec. 2015)
=0.607/236.525*236.525
=0.607

Current CPI (Dec. 2015) = 236.525.

Heartland Payment Systems Inc Quarterly Data

per share eps CPI Adj_EPS
200603 0.110 199.800 0.130
200606 0.190 202.900 0.221
200609 0.250 202.900 0.291
200612 0.164 201.800 0.192
200703 0.170 205.352 0.196
200706 0.260 208.352 0.295
200709 0.300 208.490 0.340
200712 0.169 210.036 0.190
200803 0.230 213.528 0.255
200806 0.300 218.815 0.324
200809 0.350 218.783 0.378
200812 0.207 210.228 0.233
200903 -0.070 212.709 -0.078
200906 -0.070 215.693 -0.077
200909 -0.990 215.969 -1.084
200912 -0.257 215.949 -0.281
201003 0.360 217.631 0.391
201006 0.160 217.965 0.174
201009 0.190 218.439 0.206
201012 0.168 219.179 0.181
201103 0.200 223.467 0.212
201106 0.310 225.722 0.325
201109 0.310 226.889 0.323
201112 0.277 225.672 0.290
201203 0.340 229.392 0.351
201206 0.440 229.478 0.454
201209 0.480 231.407 0.491
201212 0.385 229.601 0.397
201303 0.510 232.773 0.518
201306 0.530 233.504 0.537
201309 0.580 234.149 0.586
201312 0.458 233.049 0.465
201403 0.420 236.293 0.420
201406 0.480 238.343 0.476
201409 0.560 238.031 0.556
201412 -0.545 234.812 -0.549
201503 0.460 236.119 0.461
201506 0.560 238.638 0.555
201509 0.640 237.945 0.636
201512 0.607 236.525 0.607

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.

Heartland Payment Systems Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=103.09/1.06
=97.25

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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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