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SanDisk Corp  (NAS:SNDK) E10: $1.68 (As of Mar. 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.

SanDisk Corp's adjusted earnings per share data for the three months ended in Mar. 2016 was $0.370. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.68 for the trailing ten years ended in Mar. 2016.

As of today, SanDisk Corp's current stock price is $76.18. SanDisk Corp's E10 for the quarter that ended in Mar. 2016 was $1.68. SanDisk Corp's Shiller PE Ratio of today is 45.35.


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.

SanDisk Corp Annual Data

Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.97 1.12 1.45 1.70 1.66

SanDisk Corp Quarterly Data

Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16
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 1.69 1.70 1.68 1.66 1.68

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, SanDisk Corp's adjusted earnings per share data for the three months ended in Mar. 2016 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=0.37/238.132*238.132
=0.370

Current CPI (Mar. 2016) = 238.132.

SanDisk Corp Quarterly Data

per share eps CPI Adj_EPS
200606 0.470 202.900 0.552
200609 0.510 202.900 0.599
200612 -0.167 201.800 -0.197
200703 -0.003 205.352 -0.003
200706 0.120 208.352 0.137
200709 0.360 208.490 0.411
200712 0.449 210.036 0.509
200803 0.050 213.528 0.056
200806 -0.330 218.815 -0.359
200809 -0.740 218.783 -0.805
200812 -7.776 210.228 -8.808
200903 -0.920 212.709 -1.030
200906 0.230 215.693 0.254
200909 0.990 215.969 1.092
200912 1.445 215.949 1.593
201003 0.990 217.631 1.083
201006 1.080 217.965 1.180
201009 1.340 218.439 1.461
201012 2.041 219.179 2.217
201103 0.920 223.467 0.980
201106 1.020 225.722 1.076
201109 0.960 226.889 1.008
201112 1.139 225.672 1.202
201203 0.460 229.392 0.478
201206 0.050 229.478 0.052
201209 0.310 231.407 0.319
201212 0.873 229.601 0.905
201303 0.680 232.773 0.696
201306 1.060 233.504 1.081
201309 1.180 234.149 1.200
201312 1.443 233.049 1.474
201403 1.140 236.293 1.149
201406 1.140 238.343 1.139
201409 1.090 238.031 1.090
201412 0.859 234.812 0.871
201503 0.170 236.119 0.171
201506 0.380 238.638 0.379
201509 0.650 237.945 0.651
201512 0.649 236.525 0.653
201603 0.370 238.132 0.370

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.

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

Shiller PE Ratio=Share Price/E10
=76.18/1.68
=45.35

* 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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