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Nintendo Co Ltd  (OTCPK:NTDOY) E10: $1.01 (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.

Nintendo Co Ltd's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.284. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.01 for the trailing ten years ended in Sep. 2017.

As of today, Nintendo Co Ltd's current stock price is $49.83. Nintendo Co Ltd's E10 for the quarter that ended in Sep. 2017 was $1.01. Nintendo Co Ltd's Shiller PE Ratio of today is 49.34.

During the past 13 years, the highest Shiller PE Ratio of Nintendo Co Ltd was 49.56. The lowest was 11.01. And the median was 21.50.


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.

Nintendo Co Ltd 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 0.00 0.00 0.00 1.51 1.33

Nintendo Co Ltd 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 1.54 1.33 1.33 1.16 1.01

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, Nintendo Co Ltd'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)
=0.284186105294/246.819*246.819
=0.284

Current CPI (Sep. 2017) = 246.819.

Nintendo Co Ltd Quarterly Data

per share eps CPI Adj_EPS
200706 0.000 208.352 0.000
200803 2.496 213.528 2.885
200806 0.885 218.815 0.999
200809 0.311 218.783 0.351
200812 0.876 210.228 1.028
200903 0.665 212.709 0.772
200906 0.428 215.693 0.490
200909 0.291 215.969 0.333
200912 1.338 215.949 1.529
201003 0.388 217.631 0.440
201006 -0.271 217.965 -0.307
201009 0.269 218.439 0.304
201012 0.605 219.179 0.681
201103 0.336 223.467 0.371
201106 -0.310 225.722 -0.339
201109 -0.570 226.889 -0.620
201112 0.275 225.672 0.301
201203 0.061 229.392 0.066
201206 -0.212 229.478 -0.228
201209 -0.135 231.407 -0.144
201212 0.496 229.601 0.534
201303 -0.077 232.773 -0.081
201306 0.087 233.504 0.092
201309 -0.079 234.149 -0.083
201312 0.091 233.049 0.096
201403 -0.322 236.293 -0.336
201406 -0.103 238.343 -0.106
201409 0.238 238.031 0.247
201412 0.400 234.812 0.421
201503 -0.155 236.119 -0.162
201506 0.070 238.638 0.072
201509 0.028 237.945 0.029
201512 0.249 236.525 0.260
201603 -0.222 238.132 -0.230
201606 -0.242 241.018 -0.248
201609 0.642 241.428 0.657
201612 0.580 241.432 0.593
201703 -0.004 243.801 -0.004
201706 0.200 244.955 0.201
201709 0.284 246.819 0.284

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.

Nintendo Co Ltd's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=49.83/1.01
=49.34

* 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 Nintendo Co Ltd was 49.56. The lowest was 11.01. And the median was 21.50.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Related Terms


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