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Xerox Corp  (NYSE:XRX) E10: $2.46 (As of Jun. 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.

Xerox Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.630. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.46 for the trailing ten years ended in Jun. 2017.

As of today, Xerox Corp's current stock price is $33.52. Xerox Corp's E10 for the quarter that ended in Jun. 2017 was $2.46. Xerox Corp's Shiller PE Ratio of today is 13.63.

During the past 13 years, the highest Shiller PE Ratio of Xerox Corp was 20.81. The lowest was 4.35. And the median was 9.32.


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.

Xerox Corp 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 3.42 3.64 3.58 3.32 2.59

Xerox Corp Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 3.23 3.04 2.59 2.50 2.46

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, Xerox Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=0.63/244.955*244.955
=0.630

Current CPI (Jun. 2017) = 244.955.

Xerox Corp Quarterly Data

per share eps CPI Adj_EPS
200709 1.080 208.490 1.269
200712 1.600 210.036 1.866
200803 -1.080 213.528 -1.239
200806 0.960 218.815 1.075
200809 1.160 218.783 1.299
200812 0.000 210.228 0.000
200903 0.200 212.709 0.230
200906 0.640 215.693 0.727
200909 0.560 215.969 0.635
200912 0.800 215.949 0.907
201003 -0.160 217.631 -0.180
201006 0.640 217.965 0.719
201009 0.680 218.439 0.763
201012 0.440 219.179 0.492
201103 0.760 223.467 0.833
201106 0.880 225.722 0.955
201109 0.880 226.889 0.950
201112 1.080 225.672 1.172
201203 0.760 229.392 0.812
201206 0.880 229.478 0.939
201209 0.840 231.407 0.889
201212 1.040 229.601 1.110
201303 0.920 232.773 0.968
201306 0.840 233.504 0.881
201309 0.880 234.149 0.921
201312 0.960 233.049 1.009
201403 0.920 236.293 0.954
201406 0.880 238.343 0.904
201409 0.880 238.031 0.906
201412 0.680 234.812 0.709
201503 0.760 236.119 0.788
201506 0.040 238.638 0.041
201509 -0.160 237.945 -0.165
201512 1.000 236.525 1.036
201603 0.120 238.132 0.123
201606 0.600 241.018 0.610
201609 0.680 241.428 0.690
201612 -3.360 241.432 -3.409
201703 0.040 243.801 0.040
201706 0.630 244.955 0.630

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.

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

Shiller PE Ratio=Share Price/E10
=33.52/2.46
=13.63

* 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 Xerox Corp was 20.81. The lowest was 4.35. And the median was 9.32.


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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