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VMware Inc  (NYSE:VMW) E10: $1.78 (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.

VMware Inc's adjusted earnings per share data for the three months ended in Jul. 2017 was $0.810. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.78 for the trailing ten years ended in Jul. 2017.

As of today, VMware Inc's current stock price is $124.06. VMware Inc's E10 for the quarter that ended in Jul. 2017 was $1.78. VMware Inc's Shiller PE Ratio of today is 69.70.

During the past 13 years, the highest Shiller PE Ratio of VMware Inc was 74.77. The lowest was 32.99. And the median was 51.85.


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.

VMware Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 1.35 1.62

VMware Inc Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 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 1.46 1.53 1.62 1.70 1.78

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, VMware 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)
=0.81/244.786*244.786
=0.810

Current CPI (Jul. 2017) = 244.786.

VMware Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.180 208.490 0.211
200712 0.200 210.036 0.233
200803 0.110 213.528 0.126
200806 0.130 218.815 0.145
200809 0.210 218.783 0.235
200812 0.280 210.228 0.326
200903 0.180 212.709 0.207
200906 0.080 215.693 0.091
200909 0.090 215.969 0.102
200912 0.140 215.949 0.159
201003 0.190 217.631 0.214
201006 0.180 217.965 0.202
201009 0.200 218.439 0.224
201012 0.280 219.179 0.313
201103 0.290 223.467 0.318
201106 0.510 225.722 0.553
201109 0.410 226.889 0.442
201112 0.470 225.672 0.510
201203 0.440 229.392 0.470
201206 0.440 229.478 0.469
201209 0.360 231.407 0.381
201212 0.480 229.601 0.512
201303 0.400 232.773 0.421
201306 0.570 233.504 0.598
201309 0.600 234.149 0.627
201312 0.770 233.049 0.809
201403 0.460 236.293 0.477
201406 0.380 238.343 0.390
201409 0.450 238.031 0.463
201412 0.750 234.812 0.782
201503 0.450 236.119 0.467
201506 0.400 238.638 0.410
201509 0.600 237.945 0.617
201512 0.880 236.525 0.911
201603 0.380 238.132 0.391
201606 0.620 241.018 0.630
201609 0.750 241.428 0.760
201612 1.030 241.432 1.044
201704 0.560 244.524 0.561
201707 0.810 244.786 0.810

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.

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

Shiller PE Ratio=Share Price/E10
=124.06/1.78
=69.70

* 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 VMware Inc was 74.77. The lowest was 32.99. And the median was 51.85.


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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