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Office Depot Inc  (NAS:ODP) E10: $-0.88 (As of Jun. 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.

Office Depot Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.050. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.88 for the trailing ten years ended in Jun. 2017.

As of today, Office Depot Inc's current stock price is $3.78. Office Depot Inc's E10 for the quarter that ended in Jun. 2017 was $-0.88. Office Depot Inc's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Office Depot Inc was 535.00. The lowest was 0.00. And the median was 35.60.


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.

Office Depot 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 -0.20 -0.34 -0.54 -0.65 -0.78

Office Depot Inc Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 -0.72 -0.77 -0.78 -0.83 -0.88

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, Office Depot Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=0.05/244.955*244.955
=0.050

Current CPI (Jun. 2017) = 244.955.

Office Depot Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.430 208.490 0.505
200712 0.070 210.036 0.082
200803 0.250 213.528 0.287
200806 -0.010 218.815 -0.011
200809 -0.020 218.783 -0.022
200812 -5.640 210.228 -6.572
200903 -0.200 212.709 -0.230
200906 -0.310 215.693 -0.352
200909 -1.510 215.969 -1.713
200912 -0.280 215.949 -0.318
201003 0.070 217.631 0.079
201006 -0.090 217.965 -0.101
201009 0.120 218.439 0.135
201012 -0.400 219.179 -0.447
201103 -0.050 223.467 -0.055
201106 -0.110 225.722 -0.119
201109 0.280 226.889 0.302
201112 0.050 225.672 0.054
201203 0.140 229.392 0.149
201206 -0.230 229.478 -0.246
201209 -0.250 231.407 -0.265
201212 -0.060 229.601 -0.064
201303 -0.060 232.773 -0.063
201306 -0.230 233.504 -0.241
201309 0.410 234.149 0.429
201312 -0.470 233.049 -0.494
201403 -0.210 236.293 -0.218
201406 -0.360 238.343 -0.370
201409 0.050 238.031 0.051
201412 -0.150 234.812 -0.156
201503 0.080 236.119 0.083
201506 -0.110 238.638 -0.113
201509 0.010 237.945 0.010
201512 0.020 236.525 0.021
201603 0.080 238.132 0.082
201606 0.380 241.018 0.386
201609 0.080 241.428 0.081
201612 0.420 241.432 0.426
201703 0.220 243.801 0.221
201706 0.050 244.955 0.050

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.

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

Shiller PE Ratio=Share Price/E10
=3.78/-0.88
=

* 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 Office Depot Inc was 535.00. The lowest was 0.00. And the median was 35.60.


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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