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Adtran Inc  (NAS:ADTN) E10: $1.17 (As of Jun. 2017)

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.

Adtran Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.260. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.17 for the trailing ten years ended in Jun. 2017.

As of today, Adtran Inc's current stock price is $22.35. Adtran Inc's E10 for the quarter that ended in Jun. 2017 was $1.17. Adtran Inc's Shiller PE Ratio of today is 19.10.

During the past 13 years, the highest Shiller PE Ratio of Adtran Inc was 43.94. The lowest was 11.51. And the median was 19.30.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Adtran Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.33 1.33 1.31 1.20 1.17

Adtran Inc Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
E10 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 Premium Member Only Premium Member Only Premium Member Only 1.19 1.18 1.17 1.17 1.17

Competitive Comparison
* 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.


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.

For example, Adtran Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=0.26/244.955*244.955
=0.260

Current CPI (Jun. 2017) = 244.955.

Adtran Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.310 208.490 0.364
200712 0.270 210.036 0.315
200803 0.260 213.528 0.298
200806 0.340 218.815 0.381
200809 0.350 218.783 0.392
200812 0.270 210.228 0.315
200903 0.240 212.709 0.276
200906 0.300 215.693 0.341
200909 0.340 215.969 0.386
200912 0.290 215.949 0.329
201003 0.290 217.631 0.326
201006 0.440 217.965 0.494
201009 0.500 218.439 0.561
201012 0.550 219.179 0.615
201103 0.520 223.467 0.570
201106 0.560 225.722 0.608
201109 0.560 226.889 0.605
201112 0.490 225.672 0.532
201203 0.200 229.392 0.214
201206 0.330 229.478 0.352
201209 0.150 231.407 0.159
201212 0.060 229.601 0.064
201303 0.130 232.773 0.137
201306 0.170 233.504 0.178
201309 0.280 234.149 0.293
201312 0.200 233.049 0.210
201403 0.170 236.293 0.176
201406 0.260 238.343 0.267
201409 0.210 238.031 0.216
201412 0.170 234.812 0.177
201503 0.060 236.119 0.062
201506 0.050 238.638 0.051
201509 0.140 237.945 0.144
201512 0.110 236.525 0.114
201603 0.100 238.132 0.103
201606 0.210 241.018 0.213
201609 0.260 241.428 0.264
201612 0.150 241.432 0.152
201703 0.140 243.801 0.141
201706 0.260 244.955 0.260

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 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.

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

Shiller PE Ratio=Share Price/E10
=22.35/1.17
=19.10

* 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 Adtran Inc was 43.94. The lowest was 11.51. And the median was 19.30.


Be Aware

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


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