USD 5.90 as of today(2020-03-28). In depth view into COST E10 explanation, calculation, historical data and more" />Costco Wholesale E10 | COST - GuruFocus.com
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Costco Wholesale E10

: USD 5.90 (As of Feb. 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.

Costco Wholesale's adjusted earnings per share data for the three months ended in Feb. 2020 was USD 2.100. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is USD 5.90 for the trailing ten years ended in Feb. 2020.

As of today (2020-03-28), Costco Wholesale's current stock price is USD 284.33. Costco Wholesale's E10 for the quarter that ended in Feb. 2020 was USD 5.90. Costco Wholesale's Shiller PE Ratio of today is 48.19.

During the past 13 years, the highest Shiller PE Ratio of Costco Wholesale was 54.57. The lowest was 20.96. And the median was 36.25.


Costco Wholesale 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.

Costco Wholesale Annual Data
Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.81 4.13 4.52 5.10 5.68

Costco Wholesale Quarterly Data
May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20
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 5.33 5.57 5.68 5.80 5.90

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.


Costco Wholesale E10 Distribution

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



Costco Wholesale 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.

For example, Costco Wholesale's adjusted earnings per share data for the three months ended in Feb. 2020 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Feb. 2020 (Change)*Current CPI (Feb. 2020)
=2.1/257.14*257.14
=2.100

Current CPI (Feb. 2020) = 257.14.

Costco Wholesale Quarterly Data

per share eps CPI Adj_EPS
201011 0.710 218.800 0.834
201101 0.000 220.220 0.000
201102 0.790 221.310 0.918
201104 0.000 224.910 0.000
201105 0.730 225.960 0.831
201108 1.080 226.540 1.226
201111 0.730 226.230 0.830
201202 0.900 227.660 1.017
201205 0.880 229.810 0.985
201208 1.390 230.380 1.551
201211 0.950 230.220 1.061
201302 1.240 232.170 1.373
201305 1.040 232.940 1.148
201308 1.400 233.880 1.539
201311 0.960 233.070 1.059
201402 1.050 234.780 1.150
201405 1.070 237.900 1.157
201408 1.580 237.850 1.708
201411 1.120 236.150 1.220
201502 1.350 234.720 1.479
201505 1.170 237.810 1.265
201508 1.730 238.320 1.867
201511 1.090 237.340 1.181
201602 1.240 237.110 1.345
201605 1.240 240.230 1.327
201608 1.770 240.850 1.890
201611 1.240 241.350 1.321
201702 1.170 243.600 1.235
201705 1.590 244.730 1.671
201708 2.080 245.520 2.178
201711 1.450 246.670 1.512
201802 1.590 248.990 1.642
201805 1.700 251.590 1.738
201808 2.360 252.150 2.407
201811 1.730 252.040 1.765
201902 2.010 252.780 2.045
201905 2.050 256.090 2.058
201908 2.470 256.560 2.476
201911 1.900 257.210 1.899
202002 2.100 257.140 2.100

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


Costco Wholesale  (NAS:COST) 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.

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

Shiller PE Ratio=Share Price/E10
=284.33/5.9
=48.19

* 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 Costco Wholesale was 54.57. The lowest was 20.96. And the median was 36.25.


Be Aware

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


Costco Wholesale E10 Related Terms


Costco Wholesale E10 Headlines

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