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Henry Schein Inc  (NAS:HSIC) E10: $2.40 (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.

Henry Schein Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.855. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.40 for the trailing ten years ended in Jun. 2017.

As of today, Henry Schein Inc's current stock price is $82.76. Henry Schein Inc's E10 for the quarter that ended in Jun. 2017 was $2.40. Henry Schein Inc's Shiller PE Ratio of today is 34.48.

During the past 13 years, the highest Shiller PE Ratio of Henry Schein Inc was 49.34. The lowest was 20.88. And the median was 34.06.


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.

Henry Schein 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 1.42 1.59 1.79 1.99 2.23

Henry Schein 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 2.13 2.19 2.23 2.32 2.40

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, Henry Schein 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)
=0.855/244.955*244.955
=0.855

Current CPI (Jun. 2017) = 244.955.

Henry Schein Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.325 208.490 0.382
200712 0.425 210.036 0.496
200803 0.280 213.528 0.321
200806 0.350 218.815 0.392
200809 0.370 218.783 0.414
200812 0.315 210.228 0.367
200903 0.305 212.709 0.351
200906 0.405 215.693 0.460
200909 0.525 215.969 0.595
200912 0.480 215.949 0.544
201003 0.330 217.631 0.371
201006 0.450 217.965 0.506
201009 0.470 218.439 0.527
201012 0.495 219.179 0.553
201103 0.410 223.467 0.449
201106 0.505 225.722 0.548
201109 0.495 226.889 0.534
201112 0.575 225.672 0.624
201203 0.445 229.392 0.475
201206 0.540 229.478 0.576
201209 0.540 231.407 0.572
201212 0.630 229.601 0.672
201303 0.515 232.773 0.542
201306 0.615 233.504 0.645
201309 0.615 234.149 0.643
201312 0.720 233.049 0.757
201403 0.590 236.293 0.612
201406 0.675 238.343 0.694
201409 0.670 238.031 0.689
201412 0.780 234.812 0.814
201503 0.610 236.119 0.633
201506 0.700 238.638 0.719
201509 0.760 237.945 0.782
201512 0.775 236.525 0.803
201603 0.685 238.132 0.705
201606 0.730 241.018 0.742
201609 0.815 241.428 0.827
201612 0.860 241.432 0.873
201703 0.880 243.801 0.884
201706 0.855 244.955 0.855

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.

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

Shiller PE Ratio=Share Price/E10
=82.76/2.40
=34.48

* 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 Henry Schein Inc was 49.34. The lowest was 20.88. And the median was 34.06.


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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