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Insperity Inc  (NYSE:NSP) E10: $1.79 (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.

Insperity Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.910. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.79 for the trailing ten years ended in Sep. 2017.

As of today, Insperity Inc's current stock price is $113.65. Insperity Inc's E10 for the quarter that ended in Sep. 2017 was $1.79. Insperity Inc's Shiller PE Ratio of today is 63.49.

During the past 13 years, the highest Shiller PE Ratio of Insperity Inc was 69.48. The lowest was 16.52. And the median was 27.17.


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.

Insperity Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.28 1.37 1.39 1.42 1.56

Insperity 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 1.57 1.56 1.71 1.74 1.79

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, Insperity 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)
=0.91/246.819*246.819
=0.910

Current CPI (Sep. 2017) = 246.819.

Insperity Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.500 210.036 0.588
200803 0.510 213.528 0.590
200806 0.430 218.815 0.485
200809 0.460 218.783 0.519
200812 0.390 210.228 0.458
200903 0.330 212.709 0.383
200906 0.220 215.693 0.252
200909 0.230 215.969 0.263
200912 -0.110 215.949 -0.126
201003 0.090 217.631 0.102
201006 0.200 217.965 0.226
201009 0.280 218.439 0.316
201012 0.300 219.179 0.338
201103 0.330 223.467 0.364
201106 0.250 225.722 0.273
201109 0.160 226.889 0.174
201112 0.410 225.672 0.448
201203 0.540 229.392 0.581
201206 0.220 229.478 0.237
201209 0.450 231.407 0.480
201212 0.360 229.601 0.387
201303 0.510 232.773 0.541
201306 0.140 233.504 0.148
201309 0.390 234.149 0.411
201312 0.200 233.049 0.212
201403 0.370 236.293 0.386
201406 0.070 238.343 0.072
201409 0.330 238.031 0.342
201412 0.270 234.812 0.284
201503 0.540 236.119 0.564
201506 0.290 238.638 0.300
201509 0.480 237.945 0.498
201512 0.260 236.525 0.271
201603 1.530 238.132 1.586
201606 0.450 241.018 0.461
201609 0.660 241.428 0.675
201612 0.450 241.432 0.460
201703 1.690 243.801 1.711
201706 0.660 244.955 0.665
201709 0.910 246.819 0.910

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.

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

Shiller PE Ratio=Share Price/E10
=113.65/1.79
=63.49

* 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 Insperity Inc was 69.48. The lowest was 16.52. And the median was 27.17.


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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