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Jewett-Cameron Trading Co Ltd (NAS:JCTCF)
E10
$0.61 (As of Feb. 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.

Jewett-Cameron Trading Co Ltd's adjusted earnings per share data for the three months ended in Feb. 2016 was $0.050. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.61 for the trailing ten years ended in Feb. 2016.

As of today, Jewett-Cameron Trading Co Ltd's current stock price is $11.95. Jewett-Cameron Trading Co Ltd's E10 for the quarter that ended in Feb. 2016 was $0.61. Jewett-Cameron Trading Co Ltd's Shiller P/E Ratio of today is 19.59.

During the past 13 years, the highest Shiller P/E Ratio of Jewett-Cameron Trading Co Ltd was 29.41. The lowest was 7.41. And the median was 16.07.


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, Jewett-Cameron Trading Co Ltd's adjusted earnings per share data for the three months ended in Feb. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Feb. 2016 (Change)*Current CPI (Feb. 2016)
=0.05/237.111*237.111
=0.050

Current CPI (Feb. 2016) = 237.111.

Jewett-Cameron Trading Co Ltd Quarterly Data

201311201402201405201408201411201502201505201508201511201602
per share eps 0.1100.0800.3300.1280.1200.1100.1800.2820.2100.050
CPI 233.069234.781237.900237.852236.151234.722237.805238.316237.336237.111
Adj_EPS 0.1120.0810.3290.1280.1200.1110.1790.2810.2100.050
201105201108201111201202201205201208201211201302201305201308
per share eps 0.1500.1690.0150.3550.2900.2460.1500.2500.3200.269
CPI 225.964226.545226.230227.663229.815230.379230.221232.166232.945233.877
Adj_EPS 0.1570.1770.0160.3700.2990.2530.1540.2550.3260.273
200811200902200905200908200911201002201005201008201011201102
per share eps 0.0600.0550.1000.1150.0150.0450.1650.190-0.1850.125
CPI 212.425212.193213.856215.834216.330216.741218.178218.312218.803221.309
Adj_EPS 0.0670.0610.1110.1260.0160.0490.1790.206-0.2000.134
200605200608200611200702200705200708200711200802200805200808
per share eps 0.1200.1320.0600.0700.1600.1950.0800.1050.2000.160
CPI 202.500203.900201.500203.499207.949207.917210.177211.693216.632219.086
Adj_EPS 0.1410.1540.0710.0820.1820.2220.0900.1180.2190.173

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.

Jewett-Cameron Trading Co Ltd's Shiller P/E Ratio of today is calculated as

Shiller P/E Ratio=Share Price/E10
=11.95/0.61
=19.59

* 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 Jewett-Cameron Trading Co Ltd was 29.41. The lowest was 7.41. And the median was 16.07.


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.

Jewett-Cameron Trading Co Ltd Annual Data

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
e10 0.170.210.280.290.320.340.410.510.570.62

Jewett-Cameron Trading Co Ltd Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
e10 0.520.530.560.570.570.580.600.620.620.61
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