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Seagate Technology PLC  (NAS:STX) E10: $2.58 (As of Sep. 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.

Seagate Technology PLC's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.620. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.58 for the trailing ten years ended in Sep. 2017.

As of today, Seagate Technology PLC's current stock price is $40.29. Seagate Technology PLC's E10 for the quarter that ended in Sep. 2017 was $2.58. Seagate Technology PLC's Shiller PE Ratio of today is 15.62.

During the past 13 years, the highest Shiller PE Ratio of Seagate Technology PLC was 31.38. The lowest was 7.98. And the median was 19.57.


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.

Seagate Technology PLC Annual Data

Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.81 2.17 2.53 2.44 2.57

Seagate Technology PLC Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 2.49 2.57 2.61 2.57 2.58

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, Seagate Technology PLC's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=0.62/246.819*246.819
=0.620

Current CPI (Sep. 2017) = 246.819.

Seagate Technology PLC Quarterly Data

per share eps CPI Adj_EPS
200712 0.730 210.036 0.858
200803 0.650 213.528 0.751
200806 0.340 218.815 0.384
200809 0.120 218.783 0.135
200812 -5.800 210.228 -6.810
200903 -0.560 212.709 -0.650
200906 -0.150 215.693 -0.172
200909 0.350 215.969 0.400
200912 1.030 215.949 1.177
201003 1.000 217.631 1.134
201006 0.760 217.965 0.861
201009 0.310 218.439 0.350
201012 0.310 219.179 0.349
201103 0.210 223.467 0.232
201106 0.260 225.722 0.284
201109 0.320 226.889 0.348
201112 1.280 225.672 1.400
201203 2.480 229.392 2.668
201206 2.330 229.478 2.506
201209 1.420 231.407 1.515
201212 1.300 229.601 1.397
201303 1.130 232.773 1.198
201306 0.950 233.504 1.004
201309 1.160 234.149 1.223
201312 1.240 233.049 1.313
201403 1.170 236.293 1.222
201406 0.960 238.343 0.994
201409 1.130 238.031 1.172
201412 2.780 234.812 2.922
201503 0.880 236.119 0.920
201506 0.450 238.638 0.465
201509 0.110 237.945 0.114
201512 0.550 236.525 0.574
201603 -0.070 238.132 -0.073
201606 0.230 241.018 0.236
201609 0.550 241.428 0.562
201612 1.000 241.432 1.022
201703 0.650 243.801 0.658
201706 0.380 244.955 0.383
201709 0.620 246.819 0.620

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.

Seagate Technology PLC's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=40.29/2.58
=15.62

* 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 Seagate Technology PLC was 31.38. The lowest was 7.98. And the median was 19.57.


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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