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Luxottica Group SpA (Luxottica Group SpA) E10 : $1.59 (As of Jun. 2018)


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What is Luxottica Group SpA E10?

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.

Luxottica Group SpA's adjusted earnings per share data for the fiscal year that ended in Dec. 2017 was $2.568. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.59 for the trailing ten years ended in Dec. 2017.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

As of today (2024-05-27), Luxottica Group SpA's current stock price is $ 55.80. Luxottica Group SpA's E10 for the fiscal year that ended in Dec. 2017 was $1.59. Luxottica Group SpA's Shiller PE Ratio of today is 35.09.


Luxottica Group SpA E10 Historical Data

The historical data trend for Luxottica Group SpA's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Luxottica Group SpA E10 Chart

Luxottica Group SpA Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.36 1.25 1.21 1.27 1.59

Luxottica Group SpA Semi-Annual Data
Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18
E10 Get a 7-Day Free Trial 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 1.32 1.27 1.51 1.59 -

Competitive Comparison of Luxottica Group SpA's E10

For the Apparel Retail subindustry, Luxottica Group SpA's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


Luxottica Group SpA's Shiller PE Ratio Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Luxottica Group SpA's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Luxottica Group SpA's Shiller PE Ratio falls into.



Luxottica Group SpA E10 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.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Luxottica Group SpA's adjusted earnings per share data for the fiscal year that ended in Dec. 2017 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Dec. 2017 (Change)*Current CPI (Dec. 2017)
=2.568/101.2000*101.2000
=2.568

Current CPI (Dec. 2017) = 101.2000.

Luxottica Group SpA Annual Data

per_share_eps CPI Adj_EPS
200812 1.122 91.094 1.246
200912 0.948 92.025 1.043
201012 1.151 93.755 1.242
201112 1.263 96.837 1.320
201212 1.496 99.070 1.528
201312 1.562 99.721 1.585
201412 1.652 99.721 1.677
201512 1.819 99.814 1.844
201612 1.867 100.300 1.884
201712 2.568 101.200 2.568

Add all the adjusted EPS together and divide 10 will get our e10.


Luxottica Group SpA  (OTCPK:LUXTY) 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.

Luxottica Group SpA's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=55.80/1.59
=35.09

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

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


Luxottica Group SpA E10 Related Terms

Thank you for viewing the detailed overview of Luxottica Group SpA's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Luxottica Group SpA (Luxottica Group SpA) Business Description

Traded in Other Exchanges
N/A
Address
Piazzale L. Cadorna, 3, Milan, ITA, 20123
Luxottica designs, manufactures, and distributes high-quality prescription eyewear, frames and sunglasses. The company markets owned brands, including Ray-Ban, Oakley, Revo, and Arnette, as well as licensed brands, including Coach, Prada, Kors, and Polo Ralph Lauren. Luxottica is North America's largest eyewear retailer, with over 4,600 stores, through its Sunglass Hut, LensCrafters, Pearle Vision, Target Optical, and Ilori brands. The company also operates retail chains in Asia, Australia, South America, and Israel, totalling over 7,000 doors.

Luxottica Group SpA (Luxottica Group SpA) Headlines

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