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M.D.C. Holdings Inc  (NYSE:MDC) E10: $-0.94 (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.

M.D.C. Holdings Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.640. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.94 for the trailing ten years ended in Jun. 2017.

As of today, M.D.C. Holdings Inc's current stock price is $36.34. M.D.C. Holdings Inc's E10 for the quarter that ended in Jun. 2017 was $-0.94. M.D.C. Holdings Inc's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of M.D.C. Holdings Inc was 82.24. The lowest was 8.13. And the median was 14.98.


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.

M.D.C. Holdings 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 0.86 0.88 -0.02 -1.16 -1.51

M.D.C. Holdings Inc 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 -1.54 -1.61 -1.51 -1.25 -0.94

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, M.D.C. Holdings Inc'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)
=0.64/244.955*244.955
=0.640

Current CPI (Jun. 2017) = 244.955.

M.D.C. Holdings Inc Quarterly Data

per share eps CPI Adj_EPS
200709 -3.238 208.490 -3.804
200712 -5.857 210.036 -6.831
200803 -1.505 213.528 -1.727
200806 -2.076 218.815 -2.324
200809 -2.429 218.783 -2.720
200812 -1.838 210.228 -2.142
200903 -0.838 212.709 -0.965
200906 -0.610 215.693 -0.693
200909 -0.657 215.969 -0.745
200912 2.600 215.949 2.949
201003 -0.429 217.631 -0.483
201006 -0.076 217.965 -0.085
201009 -0.210 218.439 -0.235
201012 -0.619 219.179 -0.692
201103 -0.410 223.467 -0.449
201106 -0.571 225.722 -0.620
201109 -0.648 226.889 -0.700
201112 -0.381 225.672 -0.414
201203 0.038 229.392 0.041
201206 0.210 229.478 0.224
201209 0.390 231.407 0.413
201212 0.571 229.601 0.609
201303 0.429 232.773 0.451
201306 4.333 233.504 4.545
201309 0.705 234.149 0.738
201312 0.562 233.049 0.591
201403 0.219 236.293 0.227
201406 0.419 238.343 0.431
201409 0.305 238.031 0.314
201412 0.287 234.812 0.299
201503 0.162 236.119 0.168
201506 0.390 238.638 0.400
201509 0.286 237.945 0.294
201512 0.442 236.525 0.458
201603 0.190 238.132 0.195
201606 0.520 241.018 0.528
201609 0.514 241.428 0.522
201612 0.781 241.432 0.792
201703 0.430 243.801 0.432
201706 0.640 244.955 0.640

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.

M.D.C. Holdings Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=36.34/-0.94
=

* 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 M.D.C. Holdings Inc was 82.24. The lowest was 8.13. And the median was 14.98.


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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