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Rackspace Hosting Inc  (NYSE:RAX) E10: \$0.00 (As of Sep. 2016)

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.

Rackspace Hosting Inc's adjusted earnings per share data for the three months ended in Sep. 2016 was \$0.000. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is \$0.00 for the trailing ten years ended in Sep. 2016.

As of today, Rackspace Hosting Inc's current stock price is \$31.99. Rackspace Hosting Inc's E10 for the quarter that ended in Sep. 2016 was \$0.00. Rackspace Hosting Inc's Shiller PE Ratio of today is .

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Rackspace Hosting Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 E10 0.00 0.00 0.00 0.00 0.48

Rackspace Hosting Inc Quarterly Data

 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 E10 0.00 0.48 0.52 0.54 0.00

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, Rackspace Hosting Inc's adjusted earnings per share data for the three months ended in Sep. 2016 was:

 Adj_EPS = Earnings per Share (Diluted) / CPI of Sep. 2016 (Change) * Current CPI (Sep. 2016) = 0 / 241.428 * 241.428 = 0.000

Current CPI (Sep. 2016) = 241.428.

Rackspace Hosting Inc Quarterly Data

 per share eps CPI Adj_EPS 200612 0.050 201.800 0.060 200703 0.040 205.352 0.047 200706 0.040 208.352 0.046 200709 0.040 208.490 0.046 200712 0.040 210.036 0.046 200803 0.050 213.528 0.057 200806 0.040 218.815 0.044 200809 0.040 218.783 0.044 200812 0.060 210.228 0.069 200903 0.050 212.709 0.057 200906 0.060 215.693 0.067 200909 0.060 215.969 0.067 200912 0.070 215.949 0.078 201003 0.070 217.631 0.078 201006 0.080 217.965 0.089 201009 0.090 218.439 0.099 201012 0.100 219.179 0.110 201103 0.100 223.467 0.108 201106 0.130 225.722 0.139 201109 0.140 226.889 0.149 201112 0.180 225.672 0.193 201203 0.170 229.392 0.179 201206 0.180 229.478 0.189 201209 0.190 231.407 0.198 201212 0.210 229.601 0.221 201303 0.190 232.773 0.197 201306 0.160 233.504 0.165 201309 0.110 234.149 0.113 201312 0.140 233.049 0.145 201403 0.180 236.293 0.184 201406 0.160 238.343 0.162 201409 0.180 238.031 0.183 201412 0.230 234.812 0.236 201503 0.190 236.119 0.194 201506 0.200 238.638 0.202 201509 0.260 237.945 0.264 201512 0.210 236.525 0.214 201603 0.370 238.132 0.375 201606 0.280 241.018 0.280 201609 0.000 241.428 0.000

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.

Rackspace Hosting Inc's Shiller P/E Ratio of today is calculated as

 Shiller PE Ratio = Share Price / E10 = 31.99 / 0.00 =

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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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