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Kratos Defense & Security Solutions Inc  (NAS:KTOS) E10: $-2.51 (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.

Kratos Defense & Security Solutions Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $-0.050. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-2.51 for the trailing ten years ended in Sep. 2017.

As of today, Kratos Defense & Security Solutions Inc's current stock price is $10.33. Kratos Defense & Security Solutions Inc's E10 for the quarter that ended in Sep. 2017 was $-2.51. Kratos Defense & Security Solutions Inc's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Kratos Defense & Security Solutions Inc was 12.20. The lowest was 0.00. And the median was 3.83.


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.

Kratos Defense & Security Solutions 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 -3.04 -3.22 -3.62 -3.64 -2.87

Kratos Defense & Security Solutions Inc 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 -3.77 -2.87 -2.59 -2.69 -2.51

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, Kratos Defense & Security Solutions Inc'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)
=-0.05/246.819*246.819
=-0.050

Current CPI (Sep. 2017) = 246.819.

Kratos Defense & Security Solutions Inc Quarterly Data

per share eps CPI Adj_EPS
200712 -1.500 210.036 -1.763
200803 -0.200 213.528 -0.231
200806 0.100 218.815 0.113
200809 -0.020 218.783 -0.023
200812 -11.800 210.228 -13.854
200903 -3.290 212.709 -3.818
200906 -0.190 215.693 -0.217
200909 0.190 215.969 0.217
200912 0.180 215.949 0.206
201003 0.020 217.631 0.023
201006 0.650 217.965 0.736
201009 0.190 218.439 0.215
201012 -0.010 219.179 -0.011
201103 -0.170 223.467 -0.188
201106 -0.220 225.722 -0.241
201109 -0.220 226.889 -0.239
201112 -0.263 225.672 -0.288
201203 -0.090 229.392 -0.097
201206 -0.410 229.478 -0.441
201209 -0.070 231.407 -0.075
201212 -1.880 229.601 -2.021
201303 -0.182 232.773 -0.193
201306 -0.170 233.504 -0.180
201309 -0.170 234.149 -0.179
201312 -0.130 233.049 -0.138
201403 -0.260 236.293 -0.272
201406 -0.870 238.343 -0.901
201409 -0.190 238.031 -0.197
201412 -0.030 234.812 -0.032
201503 -0.280 236.119 -0.293
201506 -0.250 238.638 -0.259
201509 0.920 237.945 0.954
201512 -0.060 236.525 -0.063
201603 -0.370 238.132 -0.383
201606 -0.170 241.018 -0.174
201609 -0.390 241.428 -0.399
201612 -0.050 241.432 -0.051
201703 -0.130 243.801 -0.132
201706 -0.070 244.955 -0.071
201709 -0.050 246.819 -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.

Kratos Defense & Security Solutions Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=10.33/-2.51
=

* 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 Kratos Defense & Security Solutions Inc was 12.20. The lowest was 0.00. And the median was 3.83.


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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