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Synaptics Inc  (NAS:SYNA) E10: $1.75 (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.

Synaptics Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $-0.790. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.75 for the trailing ten years ended in Sep. 2017.

As of today, Synaptics Inc's current stock price is $44.90. Synaptics Inc's E10 for the quarter that ended in Sep. 2017 was $1.75. Synaptics Inc's Shiller PE Ratio of today is 25.66.

During the past 13 years, the highest Shiller PE Ratio of Synaptics Inc was 65.73. The lowest was 19.74. And the median was 34.00.


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.

Synaptics Inc 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 1.29 1.41 1.59 1.76 1.84

Synaptics Inc 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 1.76 1.80 1.81 1.84 1.75

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, Synaptics Inc'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)
=-0.79/246.819*246.819
=-0.790

Current CPI (Sep. 2017) = 246.819.

Synaptics Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.330 210.036 0.388
200803 0.080 213.528 0.092
200806 0.090 218.815 0.102
200809 0.360 218.783 0.406
200812 0.500 210.228 0.587
200903 0.150 212.709 0.174
200906 0.340 215.693 0.389
200909 0.270 215.969 0.309
200912 0.350 215.949 0.400
201003 0.330 217.631 0.374
201006 0.550 217.965 0.623
201009 0.520 218.439 0.588
201012 0.500 219.179 0.563
201103 0.380 223.467 0.420
201106 0.400 225.722 0.437
201109 0.390 226.889 0.424
201112 0.510 225.672 0.558
201203 0.330 229.392 0.355
201206 0.350 229.478 0.376
201209 0.180 231.407 0.192
201212 0.330 229.601 0.355
201303 1.070 232.773 1.135
201306 1.310 233.504 1.385
201309 1.000 234.149 1.054
201312 0.480 233.049 0.508
201403 -1.120 236.293 -1.170
201406 0.930 238.343 0.963
201409 0.680 238.031 0.705
201412 0.550 234.812 0.578
201503 0.820 236.119 0.857
201506 0.800 238.638 0.827
201509 0.620 237.945 0.643
201512 0.930 236.525 0.970
201603 0.540 238.132 0.560
201606 -0.190 241.018 -0.195
201609 0.100 241.428 0.102
201612 0.640 241.432 0.654
201703 0.130 243.801 0.132
201706 0.500 244.955 0.504
201709 -0.790 246.819 -0.790

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.

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

Shiller PE Ratio=Share Price/E10
=44.90/1.75
=25.66

* 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 Synaptics Inc was 65.73. The lowest was 19.74. And the median was 34.00.


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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