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Intel Corp  (NAS:INTC) E10: $2.07 (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.

Intel Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.940. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.07 for the trailing ten years ended in Sep. 2017.

As of today, Intel Corp's current stock price is $45.77. Intel Corp's E10 for the quarter that ended in Sep. 2017 was $2.07. Intel Corp's Shiller PE Ratio of today is 22.11.

During the past 13 years, the highest Shiller PE Ratio of Intel Corp was 25.21. The lowest was 11.40. And the median was 18.54.


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.

Intel Corp 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 1.49 1.59 1.69 1.77 1.91

Intel Corp 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 1.87 1.91 1.96 1.99 2.07

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, Intel Corp'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)
=0.94/246.819*246.819
=0.940

Current CPI (Sep. 2017) = 246.819.

Intel Corp Quarterly Data

per share eps CPI Adj_EPS
200712 0.390 210.036 0.458
200803 0.250 213.528 0.289
200806 0.280 218.815 0.316
200809 0.350 218.783 0.395
200812 0.040 210.228 0.047
200903 0.110 212.709 0.128
200906 -0.070 215.693 -0.080
200909 0.330 215.969 0.377
200912 0.400 215.949 0.457
201003 0.430 217.631 0.488
201006 0.510 217.965 0.578
201009 0.520 218.439 0.588
201012 0.560 219.179 0.631
201103 0.560 223.467 0.619
201106 0.540 225.722 0.590
201109 0.650 226.889 0.707
201112 0.640 225.672 0.700
201203 0.530 229.392 0.570
201206 0.540 229.478 0.581
201209 0.580 231.407 0.619
201212 0.480 229.601 0.516
201303 0.400 232.773 0.424
201306 0.390 233.504 0.412
201309 0.580 234.149 0.611
201312 0.520 233.049 0.551
201403 0.380 236.293 0.397
201406 0.550 238.343 0.570
201409 0.660 238.031 0.684
201412 0.730 234.812 0.767
201503 0.410 236.119 0.429
201506 0.550 238.638 0.569
201509 0.640 237.945 0.664
201512 0.740 236.525 0.772
201603 0.420 238.132 0.435
201606 0.270 241.018 0.276
201609 0.690 241.428 0.705
201612 0.730 241.432 0.746
201703 0.610 243.801 0.618
201706 0.580 244.955 0.584
201709 0.940 246.819 0.940

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.

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

Shiller PE Ratio=Share Price/E10
=45.77/2.07
=22.11

* 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 Intel Corp was 25.21. The lowest was 11.40. And the median was 18.54.


Be Aware

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


Related Terms


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