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Nu Skin Enterprises Inc  (NYSE:NUS) E10: $2.83 (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.

Nu Skin Enterprises Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.760. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.83 for the trailing ten years ended in Sep. 2017.

As of today, Nu Skin Enterprises Inc's current stock price is $63.65. Nu Skin Enterprises Inc's E10 for the quarter that ended in Sep. 2017 was $2.83. Nu Skin Enterprises Inc's Shiller PE Ratio of today is 22.49.

During the past 13 years, the highest Shiller PE Ratio of Nu Skin Enterprises Inc was 66.93. The lowest was 9.60. And the median was 22.59.


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.

Nu Skin Enterprises 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 1.56 2.08 2.25 2.37 2.61

Nu Skin Enterprises 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 2.57 2.61 2.67 2.75 2.83

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, Nu Skin Enterprises 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)
=0.76/246.819*246.819
=0.760

Current CPI (Sep. 2017) = 246.819.

Nu Skin Enterprises Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.100 210.036 0.118
200803 0.210 213.528 0.243
200806 0.320 218.815 0.361
200809 0.260 218.783 0.293
200812 0.230 210.228 0.270
200903 0.190 212.709 0.220
200906 0.350 215.693 0.401
200909 0.400 215.969 0.457
200912 0.470 215.949 0.537
201003 0.480 217.631 0.544
201006 0.500 217.965 0.566
201009 0.550 218.439 0.621
201012 0.580 219.179 0.653
201103 0.240 223.467 0.265
201106 0.650 225.722 0.711
201109 0.720 226.889 0.783
201112 0.770 225.672 0.842
201203 0.740 229.392 0.796
201206 0.940 229.478 1.011
201209 0.870 231.407 0.928
201212 0.970 229.601 1.043
201303 0.900 232.773 0.954
201306 1.220 233.504 1.290
201309 1.800 234.149 1.897
201312 2.030 233.049 2.150
201403 0.900 236.293 0.940
201406 0.320 238.343 0.331
201409 1.120 238.031 1.161
201412 0.770 234.812 0.809
201503 0.600 236.119 0.627
201506 0.750 238.638 0.776
201509 0.280 237.945 0.290
201512 0.620 236.525 0.647
201603 0.060 238.132 0.062
201606 0.790 241.018 0.809
201609 0.980 241.428 1.002
201612 0.700 241.432 0.716
201703 0.510 243.801 0.516
201706 0.770 244.955 0.776
201709 0.760 246.819 0.760

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.

Nu Skin Enterprises Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=63.65/2.83
=22.49

* 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 Nu Skin Enterprises Inc was 66.93. The lowest was 9.60. And the median was 22.59.


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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