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Sears Holdings Corp  (NAS:SHLD) E10: $-9.51 (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.

Sears Holdings Corp's adjusted earnings per share data for the three months ended in Jul. 2017 was $-2.340. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-9.51 for the trailing ten years ended in Jul. 2017.

As of today, Sears Holdings Corp's current stock price is $3.80. Sears Holdings Corp's E10 for the quarter that ended in Jul. 2017 was $-9.51. Sears Holdings Corp's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Sears Holdings Corp was 4608.00. The lowest was 0.00. And the median was 3374.00.


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.

Sears Holdings Corp 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 0.00 -1.16 -3.97 -5.69 -9.03

Sears Holdings Corp 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 -6.95 -7.79 -9.03 -9.06 -9.51

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, Sears Holdings Corp'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)
=-2.34/244.786*244.786
=-2.340

Current CPI (Jul. 2017) = 244.786.

Sears Holdings Corp Quarterly Data

per share eps CPI Adj_EPS
200710 0.028 208.936 0.033
200801 2.824 211.080 3.275
200804 -0.405 214.823 -0.461
200807 0.471 219.964 0.524
200810 -1.092 216.573 -1.234
200901 1.402 211.143 1.625
200904 0.198 213.240 0.227
200907 -0.744 215.351 -0.846
200910 -1.026 216.177 -1.162
201001 3.416 216.687 3.859
201004 0.132 218.009 0.148
201007 -0.329 218.011 -0.369
201010 -1.864 218.711 -2.086
201101 3.144 220.223 3.495
201104 -1.487 224.906 -1.618
201107 -1.289 225.922 -1.397
201110 -3.718 226.421 -4.020
201201 -21.186 226.665 -22.880
201204 1.675 230.085 1.782
201207 -1.176 229.104 -1.256
201210 -4.424 231.317 -4.682
201301 -4.865 230.280 -5.171
201304 -2.475 232.531 -2.605
201307 -1.722 233.596 -1.804
201310 -4.734 233.546 -4.962
201401 -3.938 233.916 -4.121
201404 -3.567 237.072 -3.683
201407 -5.390 238.250 -5.538
201410 -5.150 237.433 -5.309
201501 -1.490 233.707 -1.561
201504 -2.850 236.599 -2.949
201507 1.840 238.654 1.887
201510 -4.260 237.838 -4.384
201601 -5.440 236.916 -5.621
201604 -4.410 239.261 -4.512
201607 -3.700 240.628 -3.764
201610 -6.990 241.729 -7.078
201701 -5.680 242.839 -5.726
201704 2.280 244.524 2.282
201707 -2.340 244.786 -2.340

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.

Sears Holdings Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=3.80/-9.51
=

* 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 Sears Holdings Corp was 4608.00. The lowest was 0.00. And the median was 3374.00.


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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