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Esterline Technologies Corp (NYSE:ESL)
E10
\$4.09 (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.

Esterline Technologies Corp's adjusted earnings per share data for the three months ended in Sep. 2016 was \$1.760. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is \$4.09 for the trailing ten years ended in Sep. 2016.

As of today, Esterline Technologies Corp's current stock price is \$87.60. Esterline Technologies Corp's E10 for the quarter that ended in Sep. 2016 was \$4.09. Esterline Technologies Corp's Shiller P/E Ratio of today is 21.42.

During the past 13 years, the highest Shiller P/E Ratio of Esterline Technologies Corp was 30.43. The lowest was 8.86. And the median was 21.49.

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, Esterline Technologies Corp'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) = 1.76 / 241.428 * 241.428 = 1.760

Current CPI (Sep. 2016) = 241.428.

Esterline Technologies Corp Quarterly Data

 201409 201410 201501 201504 201507 201509 201512 201603 201606 201609 per share eps -0.11 -0.11 0.26 0.63 0.92 1.01 0.17 0.5 0.99 1.76 CPI 238.031 237.433 233.707 236.599 238.654 237.945 236.525 238.132 241.018 241.428 Adj_EPS -0.112 -0.112 0.269 0.643 0.931 1.025 0.174 0.507 0.992 1.76 201204 201207 201210 201301 201304 201307 201310 201401 201404 201407 per share eps 1.44 -0.55 1.97 0.8 1.12 1.2 2.07 0.93 1.14 1.19 CPI 230.085 229.104 231.317 230.28 232.531 233.596 233.546 233.916 237.072 238.25 Adj_EPS 1.511 -0.58 2.056 0.839 1.163 1.24 2.14 0.96 1.161 1.206 200910 201001 201004 201007 201010 201101 201104 201107 201110 201201 per share eps 1.14 0.42 0.98 1.3 1.95 0.97 1.47 1.21 0.62 0.73 CPI 216.177 216.687 218.009 218.011 218.711 220.223 224.906 225.922 226.421 226.665 Adj_EPS 1.273 0.468 1.085 1.44 2.153 1.063 1.578 1.293 0.661 0.778 200704 200707 200710 200801 200804 200807 200810 200901 200904 200907 per share eps 0.76 1.49 0.78 1.04 0.84 0.68 1.47 0.9 0.86 1.09 CPI 206.686 208.299 208.936 211.08 214.823 219.964 216.573 211.143 213.24 215.351 Adj_EPS 0.888 1.727 0.901 1.19 0.944 0.746 1.639 1.029 0.974 1.222

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.

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

 Shiller P/E Ratio = Share Price / E10 = 87.60 / 4.09 = 21.42

* 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 Esterline Technologies Corp was 30.43. The lowest was 8.86. And the median was 21.49.

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.

Esterline Technologies Corp Annual Data

 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Sep14 Sep15 Sep16 e10 1.97 2.22 2.40 2.65 2.97 3.42 3.84 4.00 3.95 4.09

Esterline Technologies Corp Quarterly Data

 Sep14 Oct14 Jan15 Apr15 Jul15 Sep15 Dec15 Mar16 Jun16 Sep16 e10 4.00 3.89 3.82 3.86 3.92 3.95 3.88 3.88 3.98 4.09
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