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PDL BioPharma Inc  (NAS:PDLI) E10: $1.17 (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.

PDL BioPharma Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.140. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.17 for the trailing ten years ended in Sep. 2017.

As of today, PDL BioPharma Inc's current stock price is $2.84. PDL BioPharma Inc's E10 for the quarter that ended in Sep. 2017 was $1.17. PDL BioPharma Inc's Shiller PE Ratio of today is 2.43.

During the past 13 years, the highest Shiller PE Ratio of PDL BioPharma Inc was 209.25. The lowest was 1.80. And the median was 7.90.


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.

PDL BioPharma 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 -0.10 0.24 0.48 0.88 1.08

PDL BioPharma 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 0.99 1.08 1.10 1.14 1.17

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, PDL BioPharma 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)
=0.14/246.819*246.819
=0.140

Current CPI (Sep. 2017) = 246.819.

PDL BioPharma Inc Quarterly Data

per share eps CPI Adj_EPS
200712 -0.130 210.036 -0.153
200803 -0.530 213.528 -0.613
200806 0.240 218.815 0.271
200809 0.380 218.783 0.429
200812 0.240 210.228 0.282
200903 0.230 212.709 0.267
200906 0.470 215.693 0.538
200909 0.290 215.969 0.331
200912 0.100 215.949 0.114
201003 0.150 217.631 0.170
201006 0.300 217.965 0.340
201009 0.240 218.439 0.271
201012 -0.220 219.179 -0.248
201103 0.250 223.467 0.276
201106 0.380 225.722 0.416
201109 0.280 226.889 0.305
201112 0.270 225.672 0.295
201203 0.290 229.392 0.312
201206 0.520 229.478 0.559
201209 0.320 231.407 0.341
201212 0.360 229.601 0.387
201303 0.360 232.773 0.382
201306 0.620 233.504 0.655
201309 0.360 234.149 0.379
201312 0.350 233.049 0.371
201403 0.440 236.293 0.460
201406 0.520 238.343 0.538
201409 0.610 238.031 0.633
201412 0.240 234.812 0.252
201503 0.500 236.119 0.523
201506 0.470 238.638 0.486
201509 0.420 237.945 0.436
201512 0.610 236.525 0.637
201603 0.340 238.132 0.352
201606 0.030 241.018 0.031
201609 0.080 241.428 0.082
201612 -0.060 241.432 -0.061
201703 0.040 243.801 0.040
201706 0.390 244.955 0.393
201709 0.140 246.819 0.140

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.

PDL BioPharma Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=2.84/1.17
=2.43

* 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 PDL BioPharma Inc was 209.25. The lowest was 1.80. And the median was 7.90.


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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