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Ross Stores Inc  (NAS:ROST) E10: $1.82 (As of Jul. 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.

Ross Stores Inc's adjusted earnings per share data for the three months ended in Jul. 2017 was $0.820. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.82 for the trailing ten years ended in Jul. 2017.

As of today, Ross Stores Inc's current stock price is $63.32. Ross Stores Inc's E10 for the quarter that ended in Jul. 2017 was $1.82. Ross Stores Inc's Shiller PE Ratio of today is 34.79.

During the past 13 years, the highest Shiller PE Ratio of Ross Stores Inc was 46.60. The lowest was 15.55. And the median was 33.31.


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.

Ross Stores Inc Annual Data

Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.82 0.98 1.17 1.39 1.66

Ross Stores Inc Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 1.54 1.59 1.66 1.75 1.82

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, Ross Stores Inc's adjusted earnings per share data for the three months ended in Jul. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jul. 2017 (Change)*Current CPI (Jul. 2017)
=0.82/244.786*244.786
=0.820

Current CPI (Jul. 2017) = 244.786.

Ross Stores Inc Quarterly Data

per share eps CPI Adj_EPS
200710 0.090 208.936 0.105
200801 0.173 211.080 0.201
200804 0.150 214.823 0.171
200807 0.135 219.964 0.150
200810 0.110 216.573 0.124
200901 0.190 211.143 0.220
200904 0.180 213.240 0.207
200907 0.205 215.351 0.233
200910 0.210 216.177 0.238
201001 0.288 216.687 0.325
201004 0.290 218.009 0.326
201007 0.268 218.011 0.301
201010 0.255 218.711 0.285
201101 0.340 220.223 0.378
201104 0.370 224.906 0.403
201107 0.320 225.922 0.347
201110 0.315 226.421 0.341
201201 0.425 226.665 0.459
201204 0.465 230.085 0.495
201207 0.405 229.104 0.433
201210 0.360 231.317 0.381
201301 0.535 230.280 0.569
201304 0.535 232.531 0.563
201307 0.490 233.596 0.513
201310 0.400 233.546 0.419
201401 0.510 233.916 0.534
201404 0.575 237.072 0.594
201407 0.570 238.250 0.586
201410 0.460 237.433 0.474
201501 0.600 233.707 0.628
201504 0.690 236.599 0.714
201507 0.630 238.654 0.646
201510 0.530 237.838 0.545
201601 0.660 236.916 0.682
201604 0.730 239.261 0.747
201607 0.710 240.628 0.722
201610 0.620 241.729 0.628
201701 0.770 242.839 0.776
201704 0.820 244.524 0.821
201707 0.820 244.786 0.820

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.

Ross Stores Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=63.32/1.82
=34.79

* 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 Ross Stores Inc was 46.60. The lowest was 15.55. And the median was 33.31.


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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