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Air T Inc  (NAS:AIRT) E10: $0.98 (As of Sep. 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.

Air T Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.210. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.98 for the trailing ten years ended in Sep. 2017.

As of today, Air T Inc's current stock price is $21.10. Air T Inc's E10 for the quarter that ended in Sep. 2017 was $0.98. Air T Inc's Shiller PE Ratio of today is 21.53.

During the past 13 years, the highest Shiller PE Ratio of Air T Inc was 25.86. The lowest was 7.66. And the median was 11.91.


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.

Air T Inc Annual Data

Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.14 1.13 1.13 1.24 0.94

Air T Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 1.01 1.06 0.94 0.97 0.98

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, Air T Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=0.21/246.819*246.819
=0.210

Current CPI (Sep. 2017) = 246.819.

Air T Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.380 210.036 0.447
200803 0.550 213.528 0.636
200806 0.550 218.815 0.620
200809 0.550 218.783 0.620
200812 0.400 210.228 0.470
200903 0.310 212.709 0.360
200906 0.460 215.693 0.526
200909 0.350 215.969 0.400
200912 0.510 215.949 0.583
201003 0.220 217.631 0.250
201006 0.120 217.965 0.136
201009 0.220 218.439 0.249
201012 0.240 219.179 0.270
201103 0.290 223.467 0.320
201106 0.070 225.722 0.077
201109 0.240 226.889 0.261
201112 0.240 225.672 0.262
201203 0.000 229.392 0.000
201206 0.170 229.478 0.183
201209 0.090 231.407 0.096
201212 0.260 229.601 0.279
201303 0.160 232.773 0.170
201306 0.060 233.504 0.063
201309 0.180 234.149 0.190
201312 0.190 233.049 0.201
201403 0.170 236.293 0.178
201406 0.030 238.343 0.031
201409 0.770 238.031 0.798
201412 0.610 234.812 0.641
201503 -0.370 236.119 -0.387
201506 -0.310 238.638 -0.321
201509 1.580 237.945 1.639
201512 1.140 236.525 1.190
201603 -0.580 238.132 -0.601
201606 -2.420 241.018 -2.478
201609 0.530 241.428 0.542
201612 0.600 241.432 0.613
201703 -0.700 243.801 -0.709
201706 0.470 244.955 0.474
201709 0.210 246.819 0.210

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.

Air T Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=21.10/0.98
=21.53

* 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 Air T Inc was 25.86. The lowest was 7.66. And the median was 11.91.


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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