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The Medicines Co E10

: $-1.80 (As of Sep. 2019)
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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.

The Medicines Co's adjusted earnings per share data for the three months ended in Sep. 2019 was $-0.920. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-1.80 for the trailing ten years ended in Sep. 2019.

As of today (2020-10-20), The Medicines Co's current stock price is $84.90. The Medicines Co's E10 for the quarter that ended in Sep. 2019 was $-1.80. The Medicines Co's Shiller PE Ratio of today is .


The Medicines Co 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.

The Medicines Co Annual Data
Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.43 -0.06 -0.39 -1.35 -1.52

The Medicines Co Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 -1.48 -1.52 -1.62 -1.71 -1.80

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.


The Medicines Co E10 Distribution

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



The Medicines Co 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, The Medicines Co's adjusted earnings per share data for the three months ended in Sep. 2019 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2019 (Change)*Current CPI (Sep. 2019)
=-0.92/108.5770*108.5770
=-0.920

Current CPI (Sep. 2019) = 108.5770.

The Medicines Co Quarterly Data

per share eps CPI Adj_EPS
200912 -1.410 91.423 -1.675
201003 0.180 91.980 0.212
201006 0.290 91.981 0.342
201009 0.400 92.277 0.471
201012 1.100 92.914 1.285
201103 0.450 94.890 0.515
201106 0.210 95.319 0.239
201109 1.340 95.529 1.523
201112 0.350 95.632 0.397
201203 0.140 97.075 0.157
201206 0.250 96.661 0.281
201209 0.170 97.595 0.189
201212 0.380 97.158 0.425
201303 -0.210 98.107 -0.232
201306 0.300 98.557 0.331
201309 0.120 98.536 0.132
201312 0.020 98.692 0.022
201403 -0.080 100.023 -0.087
201406 -0.080 100.520 -0.086
201409 -0.260 100.176 -0.282
201412 -0.080 98.604 -0.088
201503 0.080 99.824 0.087
201506 -0.710 100.691 -0.766
201509 -1.570 100.346 -1.699
201512 -2.990 99.957 -3.248
201603 -1.340 100.947 -1.441
201606 2.520 101.524 2.695
201609 -1.230 101.988 -1.309
201612 -1.750 102.456 -1.855
201703 -1.440 103.167 -1.516
201706 -5.530 103.278 -5.814
201709 -0.420 104.070 -0.438
201712 -2.450 104.578 -2.544
201803 0.390 105.708 0.401
201806 -0.740 106.324 -0.756
201809 -0.750 106.695 -0.763
201812 -0.580 106.200 -0.593
201903 -0.800 107.818 -0.806
201906 -0.800 108.250 -0.802
201909 -0.920 108.577 -0.920

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


The Medicines Co  (NAS:MDCO) 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.

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

Shiller PE Ratio=Share Price/E10
=84.90/-1.8
=

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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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