USD 8.82 as of today(2020-08-05). In depth view into AAPL E10 explanation, calculation, historical data and more" />Apple E10 | AAPL - GuruFocus.com
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Apple E10

: USD 8.82 (As of Jun. 2020)
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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.

Apple's adjusted earnings per share data for the three months ended in Jun. 2020 was USD 2.580. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is USD 8.82 for the trailing ten years ended in Jun. 2020.

As of today (2020-08-05), Apple's current stock price is USD 438.66. Apple's E10 for the quarter that ended in Jun. 2020 was USD 8.82. Apple's Shiller PE Ratio of today is 49.73.

During the past 13 years, the highest Shiller PE Ratio of Apple was 85.98. The lowest was 20.62. And the median was 32.93.


Apple E10 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.

Apple Annual Data
Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.80 4.66 5.62 6.84 8.02

Apple Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
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 7.73 8.02 8.48 8.63 8.82

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.


Apple E10 Distribution

* The bar in red indicates where Apple's E10 falls into.



Apple 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, Apple's adjusted earnings per share data for the three months ended in Jun. 2020 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2020 (Change)*Current CPI (Jun. 2020)
=2.58/108.1754*108.1754
=2.580

Current CPI (Jun. 2020) = 108.1754.

Apple Quarterly Data

per share eps CPI Adj_EPS
201009 0.663 92.277 0.777
201012 0.919 92.914 1.069
201103 0.914 94.890 1.042
201106 1.113 95.319 1.263
201109 1.007 95.529 1.140
201112 1.981 95.632 2.241
201203 1.757 97.075 1.958
201206 1.331 96.661 1.490
201209 1.239 97.595 1.373
201212 1.973 97.158 2.197
201303 1.441 98.107 1.589
201306 1.070 98.557 1.174
201309 1.180 98.536 1.295
201312 2.070 98.692 2.269
201403 1.660 100.023 1.795
201406 1.280 100.520 1.377
201409 1.420 100.176 1.533
201412 3.060 98.604 3.357
201503 2.330 99.824 2.525
201506 1.850 100.691 1.988
201509 1.960 100.346 2.113
201512 3.280 99.957 3.550
201603 1.900 100.947 2.036
201606 1.420 101.524 1.513
201609 1.670 101.988 1.771
201612 3.360 102.456 3.548
201703 2.100 103.167 2.202
201706 1.670 103.278 1.749
201709 2.070 104.070 2.152
201712 3.890 104.578 4.024
201803 2.730 105.708 2.794
201806 2.340 106.324 2.381
201809 2.910 106.695 2.950
201812 4.180 106.200 4.258
201903 2.460 107.818 2.468
201906 2.180 108.250 2.178
201909 3.030 108.577 3.019
201912 4.990 108.841 4.959
202003 2.550 108.173 2.550
202006 2.580 108.175 2.580

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


Apple  (NAS:AAPL) 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.

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

Shiller PE Ratio=Share Price/E10
=438.66/8.82
=49.73

* 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 Apple was 85.98. The lowest was 20.62. And the median was 32.93.


Be Aware

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


Apple E10 Related Terms


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