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TJX Companies Inc  (NYSE:TJX) E10: $2.52 (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.

TJX Companies Inc's adjusted earnings per share data for the three months ended in Jul. 2017 was $0.850. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.52 for the trailing ten years ended in Jul. 2017.

As of today, TJX Companies Inc's current stock price is $72.09. TJX Companies Inc's E10 for the quarter that ended in Jul. 2017 was $2.52. TJX Companies Inc's Shiller PE Ratio of today is 28.61.

During the past 13 years, the highest Shiller PE Ratio of TJX Companies Inc was 42.92. The lowest was 14.07. And the median was 30.05.


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.

TJX Companies Inc 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 1.29 1.54 1.78 2.04 2.36

TJX Companies Inc 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 2.20 2.26 2.36 2.44 2.52

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, TJX Companies Inc'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)
=0.85/244.786*244.786
=0.850

Current CPI (Jul. 2017) = 244.786.

TJX Companies Inc Quarterly Data

per share eps CPI Adj_EPS
200710 0.270 208.936 0.316
200801 0.330 211.080 0.383
200804 0.215 214.823 0.245
200807 0.225 219.964 0.250
200810 0.270 216.573 0.305
200901 0.290 211.143 0.336
200904 0.245 213.240 0.281
200907 0.305 215.351 0.347
200910 0.405 216.177 0.459
201001 0.465 216.687 0.525
201004 0.400 218.009 0.449
201007 0.370 218.011 0.415
201010 0.460 218.711 0.515
201101 0.420 220.223 0.467
201104 0.340 224.906 0.370
201107 0.450 225.922 0.488
201110 0.530 226.421 0.573
201201 0.620 226.665 0.670
201204 0.550 230.085 0.585
201207 0.560 229.104 0.598
201210 0.620 231.317 0.656
201301 0.820 230.280 0.872
201304 0.620 232.531 0.653
201307 0.660 233.596 0.692
201310 0.860 233.546 0.901
201401 0.800 233.916 0.837
201404 0.640 237.072 0.661
201407 0.730 238.250 0.750
201410 0.850 237.433 0.876
201501 0.930 233.707 0.974
201504 0.690 236.599 0.714
201507 0.800 238.654 0.821
201510 0.860 237.838 0.885
201601 0.980 236.916 1.013
201604 0.760 239.261 0.778
201607 0.840 240.628 0.855
201610 0.830 241.729 0.840
201701 1.030 242.839 1.038
201704 0.820 244.524 0.821
201707 0.850 244.786 0.850

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.

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

Shiller PE Ratio=Share Price/E10
=72.09/2.52
=28.61

* 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 TJX Companies Inc was 42.92. The lowest was 14.07. And the median was 30.05.


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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