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Pier 1 Imports Inc  (NYSE:PIR) E10: $0.59 (As of Aug. 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.

Pier 1 Imports Inc's adjusted earnings per share data for the three months ended in Aug. 2017 was $-0.100. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.59 for the trailing ten years ended in Aug. 2017.

As of today, Pier 1 Imports Inc's current stock price is $4.46. Pier 1 Imports Inc's E10 for the quarter that ended in Aug. 2017 was $0.59. Pier 1 Imports Inc's Shiller PE Ratio of today is 7.56.

During the past 13 years, the highest Shiller PE Ratio of Pier 1 Imports Inc was 1970.00. The lowest was 0.79. And the median was 58.58.


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.

Pier 1 Imports Inc Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.07 0.01 0.01 0.11 0.46

Pier 1 Imports Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
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 0.23 0.34 0.46 0.54 0.59

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, Pier 1 Imports Inc's adjusted earnings per share data for the three months ended in Aug. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2017 (Change)*Current CPI (Aug. 2017)
=-0.1/245.519*245.519
=-0.100

Current CPI (Aug. 2017) = 245.519.

Pier 1 Imports Inc Quarterly Data

per share eps CPI Adj_EPS
200711 -0.110 210.177 -0.128
200802 0.160 211.693 0.186
200805 -0.370 216.632 -0.419
200808 -0.340 219.086 -0.381
200811 -0.410 212.425 -0.474
200902 -0.330 212.193 -0.382
200905 0.320 213.856 0.367
200908 -0.170 215.834 -0.193
200911 0.370 216.330 0.420
201002 0.310 216.741 0.351
201005 0.070 218.178 0.079
201008 0.120 218.312 0.135
201011 0.180 218.803 0.202
201102 0.480 221.309 0.533
201105 0.120 225.964 0.130
201108 0.140 226.545 0.152
201111 0.210 226.230 0.228
201202 1.010 227.663 1.089
201205 0.160 229.815 0.171
201208 0.240 230.379 0.256
201211 0.220 230.221 0.235
201302 0.580 232.166 0.613
201305 0.190 232.945 0.200
201308 0.170 233.877 0.178
201311 0.260 233.069 0.274
201402 0.400 234.781 0.418
201405 0.160 237.900 0.165
201408 0.100 237.852 0.103
201411 0.200 236.151 0.208
201502 0.370 234.722 0.387
201505 0.080 237.805 0.083
201508 0.040 238.316 0.041
201511 0.130 237.336 0.134
201602 0.220 237.111 0.228
201605 -0.070 240.229 -0.072
201608 -0.050 240.849 -0.051
201611 0.170 241.353 0.173
201702 0.330 243.603 0.333
201705 -0.040 244.733 -0.040
201708 -0.100 245.519 -0.100

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.

Pier 1 Imports Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=4.46/0.59
=7.56

* 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 Pier 1 Imports Inc was 1970.00. The lowest was 0.79. And the median was 58.58.


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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