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CarMax E10

: $3.31 (As of Aug. 2020)
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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.

CarMax's adjusted earnings per share data for the three months ended in Aug. 2020 was $1.790. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.31 for the trailing ten years ended in Aug. 2020.

As of today (2020-09-29), CarMax's current stock price is $93.80. CarMax's E10 for the quarter that ended in Aug. 2020 was $3.31. CarMax's Shiller PE Ratio of today is 28.34.

During the past 13 years, the highest Shiller PE Ratio of CarMax was 50.15. The lowest was 13.75. And the median was 32.05.


CarMax E10 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.

CarMax Annual Data
Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.73 1.99 2.30 2.79 3.22

CarMax Quarterly Data
Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20
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 3.05 3.12 3.22 3.17 3.31

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.


CarMax E10 Distribution

* The bar in red indicates where CarMax's E10 falls into.



CarMax E10 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.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, CarMax's adjusted earnings per share data for the three months ended in Aug. 2020 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2020 (Change)*Current CPI (Aug. 2020)
=1.79/109.3175*109.3175
=1.790

Current CPI (Aug. 2020) = 109.3175.

CarMax Quarterly Data

per share eps CPI Adj_EPS
201011 0.360 92.474 0.426
201102 0.370 94.283 0.429
201105 0.540 95.235 0.620
201108 0.480 95.727 0.548
201111 0.360 95.213 0.413
201202 0.410 96.783 0.463
201205 0.520 96.819 0.587
201208 0.480 97.633 0.537
201211 0.410 96.871 0.463
201302 0.460 98.209 0.512
201305 0.640 98.518 0.710
201308 0.620 98.790 0.686
201311 0.470 98.326 0.523
201402 0.440 99.695 0.482
201405 0.760 100.560 0.826
201408 0.700 100.428 0.762
201411 0.600 99.070 0.662
201502 0.670 99.621 0.735
201505 0.860 100.684 0.934
201508 0.820 100.392 0.893
201511 0.630 99.792 0.690
201602 0.710 100.470 0.773
201605 0.900 101.688 0.968
201608 0.840 101.861 0.901
201611 0.720 101.863 0.773
201702 0.810 102.862 0.861
201705 1.130 103.349 1.195
201708 0.980 104.136 1.029
201711 0.810 104.011 0.851
201802 0.670 105.290 0.696
201805 1.330 106.317 1.368
201808 1.240 106.507 1.273
201811 1.090 105.998 1.124
201902 1.130 107.251 1.152
201905 1.590 108.070 1.608
201908 1.400 108.329 1.413
201911 1.040 108.420 1.049
202002 1.300 108.902 1.305
202005 0.030 108.767 0.030
202008 1.790 109.318 1.790

Add all the adjusted EPS together and divide 10 will get our e10.


CarMax  (NYSE:KMX) 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.

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

Shiller PE Ratio=Share Price/E10
=93.80/3.31
=28.34

* 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 CarMax was 50.15. The lowest was 13.75. And the median was 32.05.


Be Aware

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


CarMax E10 Related Terms


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