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Richardson Electronics Ltd  (NAS:RELL) E10: $0.43 (As of Nov. 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.

Richardson Electronics Ltd's adjusted earnings per share data for the three months ended in Nov. 2017 was $0.130. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.43 for the trailing ten years ended in Nov. 2017.

As of today, Richardson Electronics Ltd's current stock price is $8.09. Richardson Electronics Ltd's E10 for the quarter that ended in Nov. 2017 was $0.43. Richardson Electronics Ltd's Shiller PE Ratio of today is 18.81.

During the past 13 years, the highest Shiller PE Ratio of Richardson Electronics Ltd was 107.75. The lowest was 6.88. And the median was 16.59.


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.

Richardson Electronics Ltd Annual Data

May08 May09 May10 May11 May12 May13 May14 May15 May16 May17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.73 0.69 0.75 0.72 0.41

Richardson Electronics Ltd Quarterly Data

Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17
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 0.69 0.67 0.41 0.42 0.43

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, Richardson Electronics Ltd's adjusted earnings per share data for the three months ended in Nov. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Nov. 2017 (Change)*Current CPI (Nov. 2017)
=0.13/246.669*246.669
=0.130

Current CPI (Nov. 2017) = 246.669.

Richardson Electronics Ltd Quarterly Data

per share eps CPI Adj_EPS
200802 -0.120 211.693 -0.140
200805 -0.300 216.632 -0.342
200808 0.380 219.086 0.428
200811 0.310 212.425 0.360
200902 -0.650 212.193 -0.756
200905 -0.590 213.856 -0.681
200908 0.110 215.834 0.126
200911 0.180 216.330 0.205
201002 0.260 216.741 0.296
201005 0.350 218.178 0.396
201008 0.470 218.312 0.531
201011 0.410 218.803 0.462
201102 0.410 221.309 0.457
201105 3.600 225.964 3.930
201108 0.210 226.545 0.229
201111 0.040 226.230 0.044
201202 0.080 227.663 0.087
201205 0.160 229.815 0.172
201208 0.040 230.379 0.043
201211 0.020 230.221 0.021
201302 0.030 232.166 0.032
201305 -0.020 232.945 -0.021
201308 0.140 233.877 0.148
201311 0.030 233.069 0.032
201402 -0.038 234.781 -0.040
201405 -0.177 237.900 -0.184
201408 -0.010 237.852 -0.010
201411 -0.070 236.151 -0.073
201502 -0.160 234.722 -0.168
201505 -0.170 237.805 -0.176
201508 -0.100 238.316 -0.104
201511 -0.240 237.336 -0.249
201602 -0.230 237.111 -0.239
201605 -0.020 240.229 -0.021
201608 -0.230 240.849 -0.236
201611 -0.200 241.353 -0.204
201702 -0.110 243.603 -0.111
201705 -0.010 244.733 -0.010
201708 -0.010 245.519 -0.010
201711 0.130 246.669 0.130

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.

Richardson Electronics Ltd's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=8.09/0.43
=18.81

* 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 Richardson Electronics Ltd was 107.75. The lowest was 6.88. And the median was 16.59.


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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