Switch to:
PS Business Parks Inc  (NYSE:PSB) E10: $2.35 (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.

PS Business Parks Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.660. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.35 for the trailing ten years ended in Sep. 2017.

As of today, PS Business Parks Inc's current stock price is $137.43. PS Business Parks Inc's E10 for the quarter that ended in Sep. 2017 was $2.35. PS Business Parks Inc's Shiller PE Ratio of today is 58.48.

During the past 13 years, the highest Shiller PE Ratio of PS Business Parks Inc was 58.40. The lowest was 17.07. And the median was 40.05.


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.

PS Business Parks 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 1.57 1.59 1.84 1.93 2.11

PS Business Parks 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 2.08 2.11 2.20 2.29 2.35

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, PS Business Parks 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)
=0.66/246.819*246.819
=0.660

Current CPI (Sep. 2017) = 246.819.

PS Business Parks Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.180 210.036 0.212
200803 0.180 213.528 0.208
200806 0.220 218.815 0.248
200809 0.260 218.783 0.293
200812 0.460 210.228 0.540
200903 1.590 212.709 1.845
200906 0.390 215.693 0.446
200909 0.370 215.969 0.423
200912 0.370 215.949 0.423
201003 0.480 217.631 0.544
201006 0.370 217.965 0.419
201009 0.390 218.439 0.441
201012 0.340 219.179 0.383
201103 0.670 223.467 0.740
201106 0.460 225.722 0.503
201109 0.630 226.889 0.685
201112 0.370 225.672 0.405
201203 0.140 229.392 0.151
201206 0.060 229.478 0.065
201209 0.210 231.407 0.224
201212 0.400 229.601 0.430
201303 0.350 232.773 0.371
201306 0.360 233.504 0.381
201309 0.370 234.149 0.390
201312 0.690 233.049 0.731
201403 0.370 236.293 0.386
201406 0.360 238.343 0.373
201409 0.420 238.031 0.436
201412 3.040 234.812 3.195
201503 0.730 236.119 0.763
201506 0.410 238.638 0.424
201509 0.830 237.945 0.861
201512 0.550 236.525 0.574
201603 0.540 238.132 0.560
201606 0.580 241.018 0.594
201609 0.720 241.428 0.736
201612 0.470 241.432 0.480
201703 0.970 243.801 0.982
201706 0.900 244.955 0.907
201709 0.660 246.819 0.660

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.

PS Business Parks Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=137.43/2.35
=58.48

* 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 PS Business Parks Inc was 58.40. The lowest was 17.07. And the median was 40.05.


Be Aware

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


Related Terms


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK