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ACDVF (Air Canada) E10 : $-0.34 (As of Sep. 2024)


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What is Air Canada E10?

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.

Air Canada's adjusted earnings per share data for the three months ended in Sep. 2024 was $3.972. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.34 for the trailing ten years ended in Sep. 2024.

During the past 3 years, the average E10 Growth Rate was -219.70% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Air Canada was 47.70% per year. The lowest was -219.70% per year. And the median was -86.00% per year.

As of today (2024-12-14), Air Canada's current stock price is $17.57. Air Canada's E10 for the quarter that ended in Sep. 2024 was $-0.34. Air Canada's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Air Canada was 516.40. The lowest was 7.76. And the median was 28.86.


Air Canada E10 Historical Data

The historical data trend for Air Canada's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Air Canada E10 Chart

Air Canada Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.23 -0.02 -0.78 -1.12 -0.74

Air Canada Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.76 -0.74 -0.63 -0.63 -0.34

Competitive Comparison of Air Canada's E10

For the Airlines subindustry, Air Canada's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Air Canada's Shiller PE Ratio Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Air Canada's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Air Canada's Shiller PE Ratio falls into.



Air Canada E10 Calculation

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.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Air Canada's adjusted earnings per share data for the three months ended in Sep. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=3.972/127.2847*127.2847
=3.972

Current CPI (Sep. 2024) = 127.2847.

Air Canada Quarterly Data

per share eps CPI Adj_EPS
201412 -0.304 98.367 -0.393
201503 -0.856 99.789 -1.092
201506 0.809 100.500 1.025
201509 1.116 100.421 1.415
201512 -0.299 99.947 -0.381
201603 0.265 101.054 0.334
201606 0.512 102.002 0.639
201609 2.090 101.765 2.614
201612 -0.472 101.449 -0.592
201703 -0.037 102.634 -0.046
201706 0.850 103.029 1.050
201709 5.066 103.345 6.240
201712 0.008 103.345 0.010
201803 -0.572 105.004 -0.693
201806 -0.282 105.557 -0.340
201809 1.956 105.636 2.357
201812 -0.982 105.399 -1.186
201903 0.942 106.979 1.121
201906 0.948 107.690 1.120
201909 1.775 107.611 2.100
201912 0.440 107.769 0.520
202003 -2.865 107.927 -3.379
202006 -4.752 108.401 -5.580
202009 -1.746 108.164 -2.055
202012 -3.037 108.559 -3.561
202103 -3.103 110.298 -3.581
202106 -2.709 111.720 -3.086
202109 -1.413 112.905 -1.593
202112 -1.055 113.774 -1.180
202203 -2.148 117.646 -2.324
202206 -1.250 120.806 -1.317
202209 -1.065 120.648 -1.124
202212 0.346 120.964 0.364
202303 -0.022 122.702 -0.023
202306 1.761 124.203 1.805
202309 2.276 125.230 2.313
202312 0.306 125.072 0.311
202403 -0.163 126.258 -0.164
202406 0.759 127.522 0.758
202409 3.972 127.285 3.972

Add all the adjusted EPS together and divide 10 will get our e10.


Air Canada  (OTCPK:ACDVF) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE 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.

During the past 13 years, the highest Shiller P/E Ratio of Air Canada was 516.40. The lowest was 7.76. And the median was 28.86.


Be Aware

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


Air Canada E10 Related Terms

Thank you for viewing the detailed overview of Air Canada's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Air Canada Business Description

Traded in Other Exchanges
Address
7373 Cote Vertu Boulevard West, Air Canada Centre, Saint-Laurent, QC, CAN, H4S 1Z3
Air Canada is Canada's largest airline, serving nearly 50 million passengers each year together with its low-cost sub-brand called Rouge and contracts for regional connection flights to its network. Air Canada is a sixth-freedom airline, which flies many US-based passengers on long-haul trips with a layover in Canada.