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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.

Nintendo Co Ltd Annual Data

 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 E10 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 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.

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