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Resource America Inc  (NAS:REXI) E10: $-0.10 (As of Jun. 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.

Resource America Inc's adjusted earnings per share data for the three months ended in Jun. 2016 was $-0.010. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.10 for the trailing ten years ended in Jun. 2016.

As of today, Resource America Inc's current stock price is $9.78. Resource America Inc's E10 for the quarter that ended in Jun. 2016 was $-0.10. Resource America 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.

* Premium members only.

Resource America Inc Annual Data

Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Dec13 Dec14 Dec15
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.04 0.10 0.13 0.00 -0.07

Resource America Inc Quarterly Data

Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 -0.05 -0.06 -0.07 -0.08 -0.10

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, Resource America Inc's adjusted earnings per share data for the three months ended in Jun. 2016 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2016 (Change)*Current CPI (Jun. 2016)
=-0.01/241.018*241.018
=-0.010

Current CPI (Jun. 2016) = 241.018.

Resource America Inc Quarterly Data

per share eps CPI Adj_EPS
200609 0.120 202.900 0.143
200612 0.230 201.800 0.275
200703 0.290 205.352 0.340
200706 0.240 208.352 0.278
200709 -0.610 208.490 -0.705
200712 -0.370 210.036 -0.425
200803 0.110 213.528 0.124
200806 -0.460 218.815 -0.507
200809 -0.530 218.783 -0.584
200812 -0.180 210.228 -0.206
200903 -0.630 212.709 -0.714
200906 -0.010 215.693 -0.011
200909 0.010 215.969 0.011
200912 0.050 215.949 0.056
201003 -0.060 217.631 -0.066
201006 -0.280 217.965 -0.310
201009 -0.420 218.439 -0.463
201012 -0.030 219.179 -0.033
201103 -0.220 223.467 -0.237
201106 -0.020 225.722 -0.021
201109 -0.480 226.889 -0.510
201112 0.010 225.672 0.011
201203 -0.119 229.392 -0.125
201206 1.440 229.478 1.512
201209 -0.140 231.407 -0.146
201212 -0.070 229.601 -0.073
201303 0.020 232.773 0.021
201306 0.050 233.504 0.052
201309 0.160 234.149 0.165
201312 0.140 233.049 0.145
201403 0.040 236.293 0.041
201406 0.120 238.343 0.121
201409 0.070 238.031 0.071
201412 0.160 234.812 0.164
201503 0.070 236.119 0.071
201506 0.010 238.638 0.010
201509 -0.050 237.945 -0.051
201512 0.390 236.525 0.397
201603 0.150 238.132 0.152
201606 -0.010 241.018 -0.010

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.

Resource America Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=9.78/-0.10
=

* 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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