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Dollarama (TSX:DOL) E10 : C$2.30 (As of Oct. 2024)


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What is Dollarama E10?

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.

Dollarama's adjusted earnings per share data for the three months ended in Oct. 2024 was C$0.980. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is C$2.30 for the trailing ten years ended in Oct. 2024.

During the past 12 months, Dollarama's average E10 Growth Rate was 17.30% per year. During the past 3 years, the average E10 Growth Rate was 20.20% per year. During the past 5 years, the average E10 Growth Rate was 19.20% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Dollarama was 20.20% per year. The lowest was 18.70% per year. And the median was 19.00% per year.

As of today (2024-12-14), Dollarama's current stock price is C$141.84. Dollarama's E10 for the quarter that ended in Oct. 2024 was C$2.30. Dollarama's Shiller PE Ratio of today is 61.67.

During the past 13 years, the highest Shiller PE Ratio of Dollarama was 66.68. The lowest was 36.10. And the median was 47.70.


Dollarama E10 Historical Data

The historical data trend for Dollarama's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dollarama E10 Chart

Dollarama Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.02 1.18 1.42 1.72 2.05

Dollarama Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
E10 Get a 7-Day Free Trial 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 1.96 2.05 2.14 2.24 2.30

Competitive Comparison of Dollarama's E10

For the Discount Stores subindustry, Dollarama's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


Dollarama's Shiller PE Ratio Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Dollarama's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Dollarama's Shiller PE Ratio falls into.



Dollarama E10 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.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Dollarama's adjusted earnings per share data for the three months ended in Oct. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Oct. 2024 (Change)*Current CPI (Oct. 2024)
=0.98/127.2847*127.2847
=0.980

Current CPI (Oct. 2024) = 127.2847.

Dollarama Quarterly Data

per share eps CPI Adj_EPS
201501 0.253 98.209 0.328
201504 0.167 99.710 0.213
201507 0.247 100.579 0.313
201510 0.260 100.500 0.329
201601 0.330 100.184 0.419
201604 0.227 101.370 0.285
201607 0.293 101.844 0.366
201610 0.307 102.002 0.383
201701 0.413 102.318 0.514
201704 0.273 103.029 0.337
201707 0.380 103.029 0.469
201710 0.380 103.424 0.468
201801 0.480 104.056 0.587
201804 0.310 105.320 0.375
201807 0.420 106.110 0.504
201810 0.400 105.952 0.481
201901 0.530 105.557 0.639
201904 0.330 107.453 0.391
201907 0.450 108.243 0.529
201910 0.440 107.927 0.519
202001 0.570 108.085 0.671
202004 0.280 107.216 0.332
202007 0.460 108.401 0.540
202010 0.520 108.638 0.609
202101 0.560 109.192 0.653
202104 0.370 110.851 0.425
202107 0.480 112.431 0.543
202110 0.610 113.695 0.683
202201 0.730 114.801 0.809
202204 0.490 118.357 0.527
202207 0.660 120.964 0.694
202210 0.700 121.517 0.733
202301 0.910 121.596 0.953
202304 0.630 123.571 0.649
202307 0.860 124.914 0.876
202310 0.920 125.310 0.935
202401 1.150 125.072 1.170
202404 0.770 126.890 0.772
202407 1.020 128.075 1.014
202410 0.980 127.285 0.980

Add all the adjusted EPS together and divide 10 will get our e10.


Dollarama  (TSX:DOL) 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.

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

Shiller PE Ratio=Share Price/E10
=141.84/2.3
=61.67

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Shiller P/E Ratio of Dollarama was 66.68. The lowest was 36.10. And the median was 47.70.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Dollarama E10 Related Terms

Thank you for viewing the detailed overview of Dollarama's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Dollarama Business Description

Traded in Other Exchanges
Address
5805 Royalmount Avenue, Montreal, QC, CAN, H4P 0A1
Dollarama is Canada's largest dollar store chain that sells a broad range of everyday consumables and household items at low fixed price points currently capped at CAD 5. General merchandise and consumables make up 90% of total sales, and the rest is from festivity-related seasonal items. The retailer operates close to 1,600 stores across Canada, mostly in convenient locations in metropolitan areas, midsize cities, and small towns. It also holds a 60% stake in South American value retailer Dollarcity, which operates 550 stores across Colombia, Guatemala, El Salvador, and Peru.
Executives
Paul Roche Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Geoffrey Peter Robillard Senior Officer
Nicolas Hien Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
John Assaly Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Stephen Gunn Director
Gregory David Director
John Huw Thomas Director
Jean-philippe Towner Senior Officer
Joshua Bekenstein Director
Johanne Choinière Senior Officer
Nicholas George Nomicos Director
Josée Kouri Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
Michael Ross Senior Officer
Lawrence Rossy Director, Senior Officer