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Dollarama (FRA:DR3) E10 : €1.41 (As of Jan. 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 Jan. 2024 was €0.786. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €1.41 for the trailing ten years ended in Jan. 2024.

During the past 12 months, Dollarama's average E10 Growth Rate was 19.20% 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 (2024-06-09), Dollarama's current stock price is €85.92. Dollarama's E10 for the quarter that ended in Jan. 2024 was €1.41. Dollarama's Shiller PE Ratio of today is 60.94.

During the past 13 years, the highest Shiller PE Ratio of Dollarama was 66.68. The lowest was 36.10. And the median was 47.10.


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 0.71 0.76 0.97 1.19 1.41

Dollarama Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 1.19 1.21 1.30 1.35 1.41

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 Jan. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.786/125.0724*125.0724
=0.786

Current CPI (Jan. 2024) = 125.0724.

Dollarama Quarterly Data

per share eps CPI Adj_EPS
201404 0.086 98.920 0.109
201407 0.117 99.315 0.147
201410 0.129 99.473 0.162
201501 0.180 98.209 0.229
201504 0.125 99.710 0.157
201507 0.174 100.579 0.216
201510 0.177 100.500 0.220
201601 0.214 100.184 0.267
201604 0.156 101.370 0.192
201607 0.203 101.844 0.249
201610 0.210 102.002 0.257
201701 0.295 102.318 0.361
201704 0.190 103.029 0.231
201707 0.260 103.029 0.316
201710 0.257 103.424 0.311
201801 0.317 104.056 0.381
201804 0.198 105.320 0.235
201807 0.274 106.110 0.323
201810 0.268 105.952 0.316
201901 0.349 105.557 0.414
201904 0.220 107.453 0.256
201907 0.306 108.243 0.354
201910 0.302 107.927 0.350
202001 0.392 108.085 0.454
202004 0.183 107.216 0.213
202007 0.297 108.401 0.343
202010 0.334 108.638 0.385
202101 0.361 109.192 0.414
202104 0.248 110.851 0.280
202107 0.324 112.431 0.360
202110 0.423 113.695 0.465
202201 0.511 114.801 0.557
202204 0.359 118.357 0.379
202207 0.502 120.964 0.519
202210 0.519 121.517 0.534
202301 0.629 121.596 0.647
202304 0.426 123.571 0.431
202307 0.588 124.914 0.589
202310 0.635 125.310 0.634
202401 0.786 125.072 0.786

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


Dollarama  (FRA:DR3) 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
=85.92/1.41
=60.94

* 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 47.10.


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 (FRA:DR3) Business Description

Traded in Other Exchanges
Address
5805 Royalmount Avenue, Montreal, QC, CAN, H4P 0A1
Dollarama Inc is a Canada-based company principally engaged in operating discount retail stores. The company provides a broad range of everyday consumer products, general merchandise, and seasonal items both in-store and online. General merchandise and consumer products jointly account for the majority of the company's product offerings. The company's stores are throughout Canada, generally located in convenient locations, such as metropolitan areas, midsize cities, and small towns. All the stores are owned and operated by the company.

Dollarama (FRA:DR3) Headlines

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