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Valeant Pharmaceuticals International Inc  (NYSE:VRX) E10: $-0.14 (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.

Valeant Pharmaceuticals International Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $3.690. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.14 for the trailing ten years ended in Sep. 2017.

As of today, Valeant Pharmaceuticals International Inc's current stock price is $14.69. Valeant Pharmaceuticals International Inc's E10 for the quarter that ended in Sep. 2017 was $-0.14. Valeant Pharmaceuticals International Inc's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Valeant Pharmaceuticals International Inc was 669.00. The lowest was 0.00. And the median was 50.33.


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.

Valeant Pharmaceuticals International 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 0.86 0.59 0.65 0.31 -0.48

Valeant Pharmaceuticals International 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 -0.27 -0.48 -0.38 -0.44 -0.14

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, Valeant Pharmaceuticals International 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)
=3.69/246.819*246.819
=3.690

Current CPI (Sep. 2017) = 246.819.

Valeant Pharmaceuticals International Inc Quarterly Data

per share eps CPI Adj_EPS
200712 -0.190 210.036 -0.223
200803 0.350 213.528 0.405
200806 -0.160 218.815 -0.180
200809 0.310 218.783 0.350
200812 0.750 210.228 0.881
200903 0.250 212.709 0.290
200906 0.150 215.693 0.172
200909 0.250 215.969 0.286
200912 0.460 215.949 0.526
201003 -0.020 217.631 -0.023
201006 0.210 217.965 0.238
201009 -1.270 218.439 -1.435
201012 0.050 219.179 0.056
201103 0.020 223.467 0.022
201106 0.170 225.722 0.186
201109 0.130 226.889 0.141
201112 0.170 225.672 0.186
201203 -0.040 229.392 -0.043
201206 -0.070 229.478 -0.075
201209 0.020 231.407 0.021
201212 -0.290 229.601 -0.312
201303 -0.090 232.773 -0.095
201306 0.030 233.504 0.032
201309 -2.920 234.149 -3.078
201312 0.430 233.049 0.455
201403 -0.070 236.293 -0.073
201406 0.370 238.343 0.383
201409 0.810 238.031 0.840
201412 1.470 234.812 1.545
201503 0.280 236.119 0.293
201506 -0.150 238.638 -0.155
201509 0.140 237.945 0.145
201512 -1.130 236.525 -1.179
201603 -1.080 238.132 -1.119
201606 -0.880 241.018 -0.901
201609 -3.490 241.428 -3.568
201612 -1.470 241.432 -1.503
201703 1.790 243.801 1.812
201706 -0.110 244.955 -0.111
201709 3.690 246.819 3.690

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.

Valeant Pharmaceuticals International Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=14.69/-0.14
=

* 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 Valeant Pharmaceuticals International Inc was 669.00. The lowest was 0.00. And the median was 50.33.


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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