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Nicholas Financial Inc  (NAS:NICK) E10: $1.26 (As of Sep. 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.

Nicholas Financial Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.040. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.26 for the trailing ten years ended in Sep. 2017.

As of today, Nicholas Financial Inc's current stock price is $9.00. Nicholas Financial Inc's E10 for the quarter that ended in Sep. 2017 was $1.26. Nicholas Financial Inc's Shiller PE Ratio of today is 7.14.

During the past 13 years, the highest Shiller PE Ratio of Nicholas Financial Inc was 18.11. The lowest was 2.58. And the median was 10.43.


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.

Nicholas Financial Inc Annual Data

Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.13 1.21 1.26 1.32 1.29

Nicholas Financial Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 1.33 1.33 1.29 1.27 1.26

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, Nicholas Financial Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=0.04/246.819*246.819
=0.040

Current CPI (Sep. 2017) = 246.819.

Nicholas Financial Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.200 210.036 0.235
200803 0.177 213.528 0.205
200806 0.136 218.815 0.153
200809 0.070 218.783 0.079
200812 0.020 210.228 0.023
200903 0.180 212.709 0.209
200906 0.200 215.693 0.229
200909 0.210 215.969 0.240
200912 0.250 215.949 0.286
201003 0.280 217.631 0.318
201006 0.300 217.965 0.340
201009 0.340 218.439 0.384
201012 0.380 219.179 0.428
201103 0.400 223.467 0.442
201106 0.440 225.722 0.481
201109 0.460 226.889 0.500
201112 0.450 225.672 0.492
201203 0.500 229.392 0.538
201206 0.440 229.478 0.473
201209 0.420 231.407 0.448
201212 0.380 229.601 0.408
201303 0.390 232.773 0.414
201306 0.460 233.504 0.486
201309 0.350 234.149 0.369
201312 0.310 233.049 0.328
201403 0.230 236.293 0.240
201406 0.400 238.343 0.414
201409 0.350 238.031 0.363
201412 0.300 234.812 0.315
201503 0.330 236.119 0.345
201506 0.470 238.638 0.486
201509 0.420 237.945 0.436
201512 0.350 236.525 0.365
201603 0.330 238.132 0.342
201606 0.370 241.018 0.379
201609 0.250 241.428 0.256
201612 0.210 241.432 0.215
201703 -0.140 243.801 -0.142
201706 0.100 244.955 0.101
201709 0.040 246.819 0.040

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.

Nicholas Financial Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=9.00/1.26
=7.14

* 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 Nicholas Financial Inc was 18.11. The lowest was 2.58. And the median was 10.43.


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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