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IRIDEX Corp  (NAS:IRIX) E10: $-0.26 (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.

IRIDEX Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $-0.270. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.26 for the trailing ten years ended in Sep. 2017.

As of today, IRIDEX Corp's current stock price is $8.58. IRIDEX Corp's E10 for the quarter that ended in Sep. 2017 was $-0.26. IRIDEX Corp's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of IRIDEX Corp was 1054.00. The lowest was 0.00. And the median was 364.00.


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.

IRIDEX 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 -0.34 -0.33 -0.23 -0.25 -0.28

IRIDEX 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 -0.24 -0.28 -0.23 -0.25 -0.26

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, IRIDEX 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)
=-0.27/246.819*246.819
=-0.270

Current CPI (Sep. 2017) = 246.819.

IRIDEX Corp Quarterly Data

per share eps CPI Adj_EPS
200712 -1.890 210.036 -2.221
200803 -0.100 213.528 -0.116
200806 0.030 218.815 0.034
200809 -0.030 218.783 -0.034
200812 -0.740 210.228 -0.869
200903 0.020 212.709 0.023
200906 0.120 215.693 0.137
200909 0.070 215.969 0.080
200912 0.090 215.949 0.103
201003 0.050 217.631 0.057
201006 0.080 217.965 0.091
201009 0.090 218.439 0.102
201012 0.080 219.179 0.090
201103 0.060 223.467 0.066
201106 0.090 225.722 0.098
201109 0.030 226.889 0.033
201112 0.080 225.672 0.087
201203 0.180 229.392 0.194
201206 0.030 229.478 0.032
201209 -0.080 231.407 -0.085
201212 0.030 229.601 0.032
201303 0.090 232.773 0.095
201306 0.040 233.504 0.042
201309 0.050 234.149 0.053
201312 0.040 233.049 0.042
201403 0.050 236.293 0.052
201406 0.030 238.343 0.031
201409 0.050 238.031 0.052
201412 0.850 234.812 0.893
201503 0.020 236.119 0.021
201506 -0.070 238.638 -0.072
201509 0.040 237.945 0.041
201512 0.046 236.525 0.048
201603 0.010 238.132 0.010
201606 -0.030 241.018 -0.031
201609 -0.070 241.428 -0.072
201612 -1.060 241.432 -1.084
201703 -0.160 243.801 -0.162
201706 -0.240 244.955 -0.242
201709 -0.270 246.819 -0.270

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.

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

Shiller PE Ratio=Share Price/E10
=8.58/-0.26
=

* 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 IRIDEX Corp was 1054.00. The lowest was 0.00. And the median was 364.00.


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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