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Novagold Resources Inc  (AMEX:NG) E10: $-0.43 (As of Aug. 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.

Novagold Resources Inc's adjusted earnings per share data for the three months ended in Aug. 2017 was $-0.030. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.43 for the trailing ten years ended in Aug. 2017.

As of today, Novagold Resources Inc's current stock price is $4.12. Novagold Resources Inc's E10 for the quarter that ended in Aug. 2017 was $-0.43. Novagold Resources Inc's Shiller PE Ratio of today is .


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.

Novagold Resources Inc Annual Data

Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Nov14 Nov15 Nov16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.53 -0.50 -0.47 -0.40 -0.39

Novagold Resources Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
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 -0.41 -0.39 -0.40 -0.39 -0.43

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, Novagold Resources Inc's adjusted earnings per share data for the three months ended in Aug. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2017 (Change)*Current CPI (Aug. 2017)
=-0.03/245.519*245.519
=-0.030

Current CPI (Aug. 2017) = 245.519.

Novagold Resources Inc Quarterly Data

per share eps CPI Adj_EPS
200711 -0.326 210.177 -0.381
200802 0.224 211.693 0.260
200805 -0.221 216.632 -0.250
200808 0.019 219.086 0.021
200811 -1.500 212.425 -1.734
200902 -0.158 212.193 -0.183
200905 -0.028 213.856 -0.032
200908 -0.091 215.834 -0.104
200911 -0.123 216.330 -0.140
201002 -0.095 216.741 -0.108
201005 -0.066 218.178 -0.074
201008 -0.622 218.312 -0.700
201011 -0.111 218.803 -0.125
201102 -0.153 221.309 -0.170
201105 -0.010 225.964 -0.011
201108 -0.225 226.545 -0.244
201111 0.101 226.230 0.110
201202 -0.010 227.663 -0.011
201205 0.252 229.815 0.269
201208 -0.081 230.379 -0.086
201211 -0.382 230.221 -0.407
201302 -0.050 232.166 -0.053
201305 -0.030 232.945 -0.032
201308 -0.060 233.877 -0.063
201311 -0.060 233.069 -0.063
201402 -0.030 234.781 -0.031
201405 -0.030 237.900 -0.031
201408 -0.040 237.852 -0.041
201411 -0.020 236.151 -0.021
201502 -0.030 234.722 -0.031
201505 -0.030 237.805 -0.031
201508 -0.020 238.316 -0.021
201511 -0.020 237.336 -0.021
201602 -0.030 237.111 -0.031
201605 -0.030 240.229 -0.031
201608 -0.020 240.849 -0.020
201611 -0.030 241.353 -0.031
201702 -0.030 243.603 -0.030
201705 -0.030 244.733 -0.030
201708 -0.030 245.519 -0.030

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.

Novagold Resources Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=4.12/-0.43
=

* 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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