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Investors Real Estate Trust  (NYSE:IRET) E10: $0.15 (As of Oct. 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.

Investors Real Estate Trust's adjusted earnings per share data for the three months ended in Oct. 2017 was $0.050. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.15 for the trailing ten years ended in Oct. 2017.

As of today, Investors Real Estate Trust's current stock price is $5.68. Investors Real Estate Trust's E10 for the quarter that ended in Oct. 2017 was $0.15. Investors Real Estate Trust's Shiller PE Ratio of today is 37.87.

During the past 13 years, the highest Shiller PE Ratio of Investors Real Estate Trust was 65.92. The lowest was 23.38. And the median was 34.39.


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.

Investors Real Estate Trust Annual Data

Apr08 Apr09 Apr10 Apr11 Apr12 Apr13 Apr14 Apr15 Apr16 Apr17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.21 0.17 0.14 0.17 0.17

Investors Real Estate Trust Quarterly Data

Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17
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 0.14 0.15 0.17 0.15 0.15

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, Investors Real Estate Trust's adjusted earnings per share data for the three months ended in Oct. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Oct. 2017 (Change)*Current CPI (Oct. 2017)
=0.05/246.663*246.663
=0.050

Current CPI (Oct. 2017) = 246.663.

Investors Real Estate Trust Quarterly Data

per share eps CPI Adj_EPS
200801 0.040 211.080 0.047
200804 0.040 214.823 0.046
200807 0.030 219.964 0.034
200810 0.030 216.573 0.034
200901 0.020 211.143 0.023
200904 0.030 213.240 0.035
200907 0.020 215.351 0.023
200910 0.000 216.177 0.000
201001 0.000 216.687 0.000
201004 0.010 218.009 0.011
201007 0.020 218.011 0.023
201010 0.070 218.711 0.079
201101 0.140 220.223 0.157
201104 -0.010 224.906 -0.011
201107 0.010 225.922 0.011
201110 0.010 226.421 0.011
201201 0.020 226.665 0.022
201204 0.030 230.085 0.032
201207 0.010 229.104 0.011
201210 0.060 231.317 0.064
201301 0.030 230.280 0.032
201304 0.070 232.531 0.074
201307 0.000 233.596 0.000
201310 0.060 233.546 0.063
201401 0.000 233.916 0.000
201404 -0.290 237.072 -0.302
201407 -0.030 238.250 -0.031
201410 0.020 237.433 0.021
201501 0.050 233.707 0.053
201504 0.070 236.599 0.073
201507 0.010 238.654 0.010
201510 0.110 237.838 0.114
201601 0.300 236.916 0.312
201604 0.070 239.261 0.072
201607 -0.200 240.628 -0.205
201610 0.070 241.729 0.071
201701 0.160 242.839 0.163
201704 0.230 244.524 0.232
201707 -0.110 244.786 -0.111
201710 0.050 246.663 0.050

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.

Investors Real Estate Trust's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=5.68/0.15
=37.87

* 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 Investors Real Estate Trust was 65.92. The lowest was 23.38. And the median was 34.39.


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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