Switch to:
Marvell Technology Group Ltd  (NAS:MRVL) E10: $0.46 (As of Jul. 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.

Marvell Technology Group Ltd's adjusted earnings per share data for the three months ended in Jul. 2017 was $0.320. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.46 for the trailing ten years ended in Jul. 2017.

As of today, Marvell Technology Group Ltd's current stock price is $20.38. Marvell Technology Group Ltd's E10 for the quarter that ended in Jul. 2017 was $0.46. Marvell Technology Group Ltd's Shiller PE Ratio of today is 44.30.

During the past 13 years, the highest Shiller PE Ratio of Marvell Technology Group Ltd was 168.23. The lowest was 17.07. And the median was 29.67.


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.

Marvell Technology Group Ltd 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 0.43 0.51 0.56 0.00 0.38

Marvell Technology Group Ltd Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 0.35 0.36 0.38 0.42 0.46

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, Marvell Technology Group Ltd's adjusted earnings per share data for the three months ended in Jul. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jul. 2017 (Change)*Current CPI (Jul. 2017)
=0.32/244.786*244.786
=0.320

Current CPI (Jul. 2017) = 244.786.

Marvell Technology Group Ltd Quarterly Data

per share eps CPI Adj_EPS
200710 -0.010 208.936 -0.012
200801 0.010 211.080 0.012
200804 0.110 214.823 0.125
200807 0.110 219.964 0.122
200810 0.110 216.573 0.124
200901 -0.110 211.143 -0.128
200904 -0.180 213.240 -0.207
200907 0.090 215.351 0.102
200910 0.310 216.177 0.351
201001 0.310 216.687 0.350
201004 0.300 218.009 0.337
201007 0.330 218.011 0.371
201010 0.380 218.711 0.425
201101 0.330 220.223 0.367
201104 0.220 224.906 0.239
201107 0.310 225.922 0.336
201110 0.320 226.421 0.346
201201 0.140 226.665 0.151
201204 0.160 230.085 0.170
201207 0.160 229.104 0.171
201210 0.120 231.317 0.127
201301 0.090 230.280 0.096
201304 0.110 232.531 0.116
201307 0.120 233.596 0.126
201310 0.210 233.546 0.220
201401 0.200 233.916 0.209
201404 0.190 237.072 0.196
201407 0.270 238.250 0.277
201410 0.220 237.433 0.227
201501 0.160 233.707 0.168
201504 0.030 236.599 0.031
201507 -1.490 238.654 -1.528
201510 -0.110 237.838 -0.113
201601 0.000 236.916 0.000
201604 -0.040 239.261 -0.041
201607 0.100 240.628 0.102
201610 0.140 241.729 0.142
201701 -0.160 242.839 -0.161
201704 0.210 244.524 0.210
201707 0.320 244.786 0.320

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.

Marvell Technology Group Ltd's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=20.38/0.46
=44.30

* 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 Marvell Technology Group Ltd was 168.23. The lowest was 17.07. And the median was 29.67.


Be Aware

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


Related Terms


Headlines

From the Internet

Marvell Buys Cavium in $6B Cash and Stock Deal

- Barron's 2017-11-20 08:32:00

5 Things You Should Know Before the Bell Monday

- theStreet 2017-11-20 08:10:00

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK