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Prospect Capital Corp  (NAS:PSEC) E10: $0.91 (As of Mar. 2019)

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.

Prospect Capital Corp's adjusted earnings per share data for the three months ended in Mar. 2019 was $0.240. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.91 for the trailing ten years ended in Mar. 2019.

As of today, Prospect Capital Corp's current stock price is $6.76. Prospect Capital Corp's E10 for the quarter that ended in Mar. 2019 was $0.91. Prospect Capital Corp's Shiller PE Ratio of today is 7.43.

During the past 13 years, the highest Shiller PE Ratio of Prospect Capital Corp was 9.17. The lowest was 5.18. And the median was 6.77.


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.

Prospect Capital Corp Annual Data

Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 1.25 1.07 1.02 1.02

Prospect Capital Corp Quarterly Data

Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
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 1.07 1.02 0.99 0.93 0.91

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.


Prospect Capital Corp Distribution

* The bar in red indicates where Prospect Capital Corp's E10 falls into.



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, Prospect Capital Corp's adjusted earnings per share data for the three months ended in Mar. 2019 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2019 (Change)*Current CPI (Mar. 2019)
=0.24/254.202*254.202
=0.240

Current CPI (Mar. 2019) = 254.202.

Prospect Capital Corp Quarterly Data

per share eps CPI Adj_EPS
200906 -0.100 215.693 -0.118
200909 -0.130 215.969 -0.153
200912 -0.250 215.949 -0.294
201003 0.410 217.631 0.479
201006 0.211 217.965 0.246
201009 0.340 218.439 0.396
201012 0.380 219.179 0.441
201103 0.380 223.467 0.432
201106 0.251 225.722 0.283
201109 0.370 226.889 0.415
201112 0.590 225.672 0.665
201203 0.440 229.392 0.488
201206 0.260 229.478 0.288
201209 0.290 231.407 0.319
201212 0.240 229.601 0.266
201303 0.200 232.773 0.218
201306 0.334 233.504 0.364
201309 0.310 234.149 0.337
201312 0.300 233.049 0.327
201403 0.260 236.293 0.280
201406 0.210 238.343 0.224
201409 0.240 238.031 0.256
201412 0.240 234.812 0.260
201503 0.230 236.119 0.248
201506 0.264 238.638 0.281
201509 0.080 237.945 0.085
201512 -0.270 236.525 -0.290
201603 0.210 238.132 0.224
201606 0.266 241.018 0.281
201609 0.230 241.428 0.242
201612 0.280 241.432 0.295
201703 0.050 243.801 0.052
201706 0.140 244.955 0.145
201709 0.030 246.819 0.031
201712 0.340 246.524 0.351
201803 0.140 249.554 0.143
201806 0.310 251.989 0.313
201809 0.230 252.439 0.232
201812 -0.180 251.233 -0.182
201903 0.240 254.202 0.240

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.

Prospect Capital Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=6.76/0.91
=7.43

* 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 Prospect Capital Corp was 9.17. The lowest was 5.18. And the median was 6.77.


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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