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Walmart Inc  (NYSE:WMT) E10: $4.69 (As of Oct. 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.

Walmart Inc's adjusted earnings per share data for the three months ended in Oct. 2017 was $0.580. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.69 for the trailing ten years ended in Oct. 2017.

As of today, Walmart Inc's current stock price is $94.11. Walmart Inc's E10 for the quarter that ended in Oct. 2017 was $4.69. Walmart Inc's Shiller PE Ratio of today is 20.07.

During the past 13 years, the highest Shiller PE Ratio of Walmart Inc was 25.79. The lowest was 12.97. And the median was 18.85.


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.

Walmart 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 3.71 4.01 4.21 4.39 4.63

Walmart Inc Quarterly Data

Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17
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 4.58 4.63 4.65 4.67 4.69

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, Walmart Inc's adjusted earnings per share data for the three months ended in Oct. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Oct. 2017 (Change)*Current CPI (Oct. 2017)
=0.58/246.663*246.663
=0.580

Current CPI (Oct. 2017) = 246.663.

Walmart Inc Quarterly Data

per share eps CPI Adj_EPS
200801 1.020 211.080 1.192
200804 0.760 214.823 0.873
200807 0.870 219.964 0.976
200810 0.800 216.573 0.911
200901 0.960 211.143 1.121
200904 0.770 213.240 0.891
200907 0.890 215.351 1.019
200910 0.810 216.177 0.924
201001 1.240 216.687 1.412
201004 0.870 218.009 0.984
201007 0.970 218.011 1.097
201010 0.950 218.711 1.071
201101 1.680 220.223 1.882
201104 0.970 224.906 1.064
201107 1.090 225.922 1.190
201110 0.960 226.421 1.046
201201 1.500 226.665 1.632
201204 1.090 230.085 1.169
201207 1.180 229.104 1.270
201210 1.080 231.317 1.152
201301 1.670 230.280 1.789
201304 1.140 232.531 1.209
201307 1.240 233.596 1.309
201310 1.140 233.546 1.204
201401 1.360 233.916 1.434
201404 1.110 237.072 1.155
201407 1.260 238.250 1.304
201410 1.150 237.433 1.195
201501 1.540 233.707 1.625
201504 1.030 236.599 1.074
201507 1.080 238.654 1.116
201510 1.030 237.838 1.068
201601 1.440 236.916 1.499
201604 0.980 239.261 1.010
201607 1.210 240.628 1.240
201610 0.980 241.729 1.000
201701 1.220 242.839 1.239
201704 1.000 244.524 1.009
201707 0.960 244.786 0.967
201710 0.580 246.663 0.580

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.

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

Shiller PE Ratio=Share Price/E10
=94.11/4.69
=20.07

* 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 Walmart Inc was 25.79. The lowest was 12.97. And the median was 18.85.


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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