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Walt Disney Co (NYSE:DIS)
E10
\$3.40 (As of Sep. 2016)

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.

Walt Disney Co's adjusted earnings per share data for the three months ended in Sep. 2016 was \$1.100. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is \$3.40 for the trailing ten years ended in Sep. 2016.

As of today, Walt Disney Co's current stock price is \$107.66. Walt Disney Co's E10 for the quarter that ended in Sep. 2016 was \$3.40. Walt Disney Co's Shiller P/E Ratio of today is 31.66.

During the past 13 years, the highest Shiller P/E Ratio of Walt Disney Co was 41.24. The lowest was 13.42. And the median was 28.05.

Definition

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, Walt Disney Co's adjusted earnings per share data for the three months ended in Sep. 2016 was:

 Adj_EPS = Earnigns per Share / CPI of Sep. 2016 (Change) * Current CPI (Sep. 2016) = 1.1 / 241.428 * 241.428 = 1.100

Current CPI (Sep. 2016) = 241.428.

Walt Disney Co Quarterly Data

 201406 201409 201412 201503 201506 201509 201512 201603 201606 201609 per share eps 1.28 0.86 1.27 1.23 1.45 0.95 1.73 1.3 1.59 1.1 CPI 238.343 238.031 234.812 236.119 238.638 237.945 236.525 238.132 241.018 241.428 Adj_EPS 1.297 0.872 1.306 1.258 1.467 0.964 1.766 1.318 1.593 1.1 201112 201203 201206 201209 201212 201303 201306 201309 201312 201403 per share eps 0.8 0.63 1.01 0.69 0.77 0.83 1.01 0.77 1.03 1.08 CPI 225.672 229.392 229.478 231.407 229.601 232.773 233.504 234.149 233.049 236.293 Adj_EPS 0.856 0.663 1.063 0.72 0.81 0.861 1.044 0.794 1.067 1.103 200906 200909 200912 201003 201006 201009 201012 201103 201106 201109 per share eps 0.51 0.47 0.44 0.48 0.67 0.43 0.68 0.49 0.77 0.59 CPI 215.693 215.969 215.949 217.631 217.965 218.439 219.179 223.467 225.722 226.889 Adj_EPS 0.571 0.525 0.492 0.532 0.742 0.475 0.749 0.529 0.824 0.628 200612 200703 200706 200709 200712 200803 200806 200809 200812 200903 per share eps 0.79 0.44 0.57 0.44 0.63 0.58 0.66 0.41 0.45 0.33 CPI 201.8 205.352 208.352 208.49 210.036 213.528 218.815 218.783 210.228 212.709 Adj_EPS 0.945 0.517 0.66 0.51 0.724 0.656 0.728 0.452 0.517 0.375

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 P/E 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.

Walt Disney Co's Shiller P/E Ratio of today is calculated as

 Shiller P/E Ratio = Share Price / E10 = 107.66 / 3.40 = 31.66

* 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 Walt Disney Co was 41.24. The lowest was 13.42. And the median was 28.05.

Be Aware

Shiller P/E Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.

Related Terms

Shiller P/E Ratio

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Walt Disney Co Annual Data

 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 e10 1.01 1.18 1.26 1.43 1.75 2.02 2.31 2.64 2.99 3.40

Walt Disney Co Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 e10 2.58 2.64 2.68 2.79 2.91 2.99 3.09 3.21 3.33 3.40
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