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JC Penney Co Inc  (NYSE:JCP) E10: $-0.84 (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.

JC Penney Co Inc's adjusted earnings per share data for the three months ended in Oct. 2017 was $-0.410. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.84 for the trailing ten years ended in Oct. 2017.

As of today, JC Penney Co Inc's current stock price is $3.99. JC Penney Co Inc's E10 for the quarter that ended in Oct. 2017 was $-0.84. JC Penney Co Inc's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of JC Penney Co Inc was 527.50. The lowest was 0.00. And the median was 15.81.


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.

JC Penney Co Inc Annual Data

Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.46 1.41 0.95 0.26 -0.35

JC Penney Co Inc 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 -0.15 -0.35 -0.53 -0.65 -0.84

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, JC Penney Co Inc'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)
=-0.41/246.663*246.663
=-0.410

Current CPI (Oct. 2017) = 246.663.

JC Penney Co Inc Quarterly Data

per share eps CPI Adj_EPS
200801 1.920 211.080 2.244
200804 0.540 214.823 0.620
200807 0.520 219.964 0.583
200810 0.560 216.573 0.638
200901 0.950 211.143 1.110
200904 0.110 213.240 0.127
200907 0.000 215.351 0.000
200910 0.110 216.177 0.126
201001 0.860 216.687 0.979
201004 0.250 218.009 0.283
201007 0.060 218.011 0.068
201010 0.190 218.711 0.214
201101 1.130 220.223 1.266
201104 0.280 224.906 0.307
201107 0.070 225.922 0.076
201110 -0.670 226.421 -0.730
201201 -0.400 226.665 -0.435
201204 -0.750 230.085 -0.804
201207 -0.670 229.104 -0.721
201210 -0.560 231.317 -0.597
201301 -2.510 230.280 -2.689
201304 -1.580 232.531 -1.676
201307 -2.660 233.596 -2.809
201310 -1.940 233.546 -2.049
201401 1.040 233.916 1.097
201404 -1.150 237.072 -1.197
201407 -0.560 238.250 -0.580
201410 -0.620 237.433 -0.644
201501 -0.020 233.707 -0.021
201504 -0.490 236.599 -0.511
201507 -0.380 238.654 -0.393
201510 -0.380 237.838 -0.394
201601 -0.430 236.916 -0.448
201604 -0.220 239.261 -0.227
201607 -0.180 240.628 -0.185
201610 -0.220 241.729 -0.224
201701 0.623 242.839 0.633
201704 -0.580 244.524 -0.585
201707 -0.200 244.786 -0.202
201710 -0.410 246.663 -0.410

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.

JC Penney Co Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=3.99/-0.84
=

* 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 JC Penney Co Inc was 527.50. The lowest was 0.00. And the median was 15.81.


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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