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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.

SanDisk Corp Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 E10 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 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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