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Lydall Inc (NYSE:LDL)
E10
$0.87 (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.

Lydall Inc's adjusted earnings per share data for the three months ended in Sep. 2016 was $0.750. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.87 for the trailing ten years ended in Sep. 2016.

As of today, Lydall Inc's current stock price is $64.20. Lydall Inc's E10 for the quarter that ended in Sep. 2016 was $0.87. Lydall Inc's Shiller P/E Ratio of today is 73.79.

During the past 13 years, the highest Shiller P/E Ratio of Lydall Inc was 74.99. The lowest was 6.58. And the median was 42.29.


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, Lydall Inc'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)
=0.75/241.428*241.428
=0.750

Current CPI (Sep. 2016) = 241.428.

Lydall Inc Quarterly Data

201406201409201412201503201506201509201512201603201606201609
per share eps 0.4900.2400.3301.1100.6400.6600.3100.5400.6300.750
CPI 238.343238.031234.812236.119238.638237.945236.525238.132241.018241.428
Adj_EPS 0.4960.2430.3391.1350.6470.6700.3160.5470.6310.750
201112201203201206201209201212201303201306201309201312201403
per share eps 0.1600.2300.3900.2300.1400.2600.3500.2700.2500.220
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.1710.2420.4100.2400.1470.2700.3620.2780.2590.225
200906200909200912201003201006201009201012201103201106201109
per share eps -0.360-0.030-0.210-0.0300.1200.080-0.0200.1700.4200.070
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS -0.403-0.034-0.235-0.0330.1330.088-0.0220.1840.4490.074
200612200703200706200709200712200803200806200809200812200903
per share eps 0.1300.0800.2100.1100.1400.1900.1700.160-0.840-0.270
CPI 201.800205.352208.352208.490210.036213.528218.815218.783210.228212.709
Adj_EPS 0.1560.0940.2430.1270.1610.2150.1880.177-0.965-0.306

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.

Lydall Inc's Shiller P/E Ratio of today is calculated as

Shiller P/E Ratio=Share Price/E10
=64.20/0.87
=73.79

* 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 Lydall Inc was 74.99. The lowest was 6.58. And the median was 42.29.


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.

Lydall Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
e10 0.520.430.370.200.240.270.290.350.480.72

Lydall Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
e10 0.420.440.480.590.650.700.720.760.820.87
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