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Steelcase Inc  (NYSE:SCS) E10: $0.62 (As of Aug. 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.

Steelcase Inc's adjusted earnings per share data for the three months ended in Aug. 2017 was $0.310. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.62 for the trailing ten years ended in Aug. 2017.

As of today, Steelcase Inc's current stock price is $15.50. Steelcase Inc's E10 for the quarter that ended in Aug. 2017 was $0.62. Steelcase Inc's Shiller PE Ratio of today is 25.00.

During the past 13 years, the highest Shiller PE Ratio of Steelcase Inc was 970.00. The lowest was 13.89. And the median was 35.26.


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.

Steelcase Inc Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.30 0.40 0.46 0.58 0.63

Steelcase Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
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 0.61 0.62 0.63 0.62 0.62

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, Steelcase Inc's adjusted earnings per share data for the three months ended in Aug. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2017 (Change)*Current CPI (Aug. 2017)
=0.31/245.519*245.519
=0.310

Current CPI (Aug. 2017) = 245.519.

Steelcase Inc Quarterly Data

per share eps CPI Adj_EPS
200711 0.220 210.177 0.257
200802 0.210 211.693 0.244
200805 0.160 216.632 0.181
200808 0.230 219.086 0.258
200811 0.000 212.425 0.000
200902 -0.490 212.193 -0.567
200905 0.000 213.856 0.000
200908 0.000 215.834 0.000
200911 0.000 216.330 0.000
201002 -0.100 216.741 -0.113
201005 -0.080 218.178 -0.090
201008 0.020 218.312 0.022
201011 0.140 218.803 0.157
201102 0.080 221.309 0.089
201105 0.060 225.964 0.065
201108 0.090 226.545 0.098
201111 0.170 226.230 0.184
201202 0.120 227.663 0.129
201205 0.100 229.815 0.107
201208 0.230 230.379 0.245
201211 0.180 230.221 0.192
201302 -0.220 232.166 -0.233
201305 0.100 232.945 0.105
201308 0.220 233.877 0.231
201311 0.180 233.069 0.190
201402 0.190 234.781 0.199
201405 0.170 237.900 0.175
201408 0.240 237.852 0.248
201411 0.090 236.151 0.094
201502 0.180 234.722 0.188
201505 0.160 237.805 0.165
201508 0.300 238.316 0.309
201511 0.280 237.336 0.290
201602 0.620 237.111 0.642
201605 0.160 240.229 0.164
201608 0.310 240.849 0.316
201611 0.340 241.353 0.346
201702 0.210 243.603 0.212
201705 0.150 244.733 0.150
201708 0.310 245.519 0.310

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.

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

Shiller PE Ratio=Share Price/E10
=15.50/0.62
=25.00

* 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 Steelcase Inc was 970.00. The lowest was 13.89. And the median was 35.26.


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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