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Macerich Co  (NYSE:MAC) E10: $3.14 (As of Jun. 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.

Macerich Co's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.190. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.14 for the trailing ten years ended in Jun. 2017.

As of today, Macerich Co's current stock price is $56.76. Macerich Co's E10 for the quarter that ended in Jun. 2017 was $3.14. Macerich Co's Shiller PE Ratio of today is 18.08.

During the past 13 years, the highest Shiller PE Ratio of Macerich Co was 52.98. The lowest was 2.85. And the median was 29.35.


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.

Macerich Co 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 1.77 1.84 2.76 3.00 3.03

Macerich Co Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 3.32 3.25 3.03 3.11 3.14

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, Macerich Co's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=0.19/244.955*244.955
=0.190

Current CPI (Jun. 2017) = 244.955.

Macerich Co Quarterly Data

per share eps CPI Adj_EPS
200709 0.260 208.490 0.305
200712 0.530 210.036 0.618
200803 1.204 213.528 1.381
200806 0.202 218.815 0.226
200809 0.029 218.783 0.032
200812 0.697 210.228 0.812
200903 0.180 212.709 0.207
200906 -0.290 215.693 -0.329
200909 1.750 215.969 1.985
200912 -0.260 215.949 -0.295
201003 -0.080 217.631 -0.090
201006 -0.010 217.965 -0.011
201009 0.060 218.439 0.067
201012 0.176 219.179 0.197
201103 0.000 223.467 0.000
201106 -0.150 225.722 -0.163
201109 0.100 226.889 0.108
201112 1.240 225.672 1.346
201203 -0.110 229.392 -0.117
201206 1.000 229.478 1.067
201209 0.330 231.407 0.349
201212 1.290 229.601 1.376
201303 0.130 232.773 0.137
201306 1.570 233.504 1.647
201309 0.270 234.149 0.282
201312 1.030 233.049 1.083
201403 0.130 236.293 0.135
201406 0.110 238.343 0.113
201409 0.250 238.031 0.257
201412 9.960 234.812 10.390
201503 0.150 236.119 0.156
201506 0.090 238.638 0.092
201509 0.210 237.945 0.216
201512 2.620 236.525 2.713
201603 2.760 238.132 2.839
201606 0.310 241.018 0.315
201609 0.090 241.428 0.091
201612 0.270 241.432 0.274
201703 0.480 243.801 0.482
201706 0.190 244.955 0.190

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.

Macerich Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=56.76/3.14
=18.08

* 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 Macerich Co was 52.98. The lowest was 2.85. And the median was 29.35.


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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