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IDEX Corp (NYSE:IEX)
E10
$2.34 (As of Mar. 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.

IDEX Corp's adjusted earnings per share data for the three months ended in Mar. 2016 was $0.890. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.34 for the trailing ten years ended in Mar. 2016.

As of today, IDEX Corp's current stock price is $81.50. IDEX Corp's E10 for the quarter that ended in Mar. 2016 was $2.34. IDEX Corp's Shiller P/E Ratio of today is 34.83.

During the past 13 years, the highest Shiller P/E Ratio of IDEX Corp was 40.99. The lowest was 13.80. And the median was 29.21.


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, IDEX Corp's adjusted earnings per share data for the three months ended in Mar. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=0.89/238.132*238.132
=0.890

Current CPI (Mar. 2016) = 238.132.

IDEX Corp Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 0.8200.9100.8800.8800.7700.8400.8901.0200.8700.890
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525238.132
Adj_EPS 0.8380.9170.8790.8800.7810.8470.8881.0210.8760.890
201106201109201112201203201206201209201212201303201306201309
per share eps 0.6000.5800.5700.6200.6500.600-1.4300.7400.7600.780
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS 0.6330.6090.6010.6440.6750.617-1.4830.7570.7750.793
200812200903200906200909200912201003201006201009201012201103
per share eps 0.2400.2800.3400.3700.4100.4500.4900.4700.5000.570
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS 0.2720.3130.3750.4080.4520.4920.5350.5120.5430.607
200606200609200612200703200706200709200712200803200806200809
per share eps 0.4330.5700.4400.4500.5100.4700.4700.5000.5600.230
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 0.5080.6690.5190.5220.5830.5370.5330.5580.6090.250

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.

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

Shiller P/E Ratio=Share Price/E10
=81.50/2.34
=34.83

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

During the past 13 years, the highest Shiller P/E Ratio of IDEX Corp was 40.99. The lowest was 13.80. And the median was 29.21.


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 own currency.

IDEX Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
e10 1.101.221.251.321.411.641.601.842.062.25

IDEX Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
e10 1.841.921.992.042.062.112.172.232.252.34
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