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Allegiant Travel Co  (NAS:ALGT) E10: $6.03 (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.

Allegiant Travel Co's adjusted earnings per share data for the three months ended in Jun. 2017 was $2.940. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $6.03 for the trailing ten years ended in Jun. 2017.

As of today, Allegiant Travel Co's current stock price is $138.90. Allegiant Travel Co's E10 for the quarter that ended in Jun. 2017 was $6.03. Allegiant Travel Co's Shiller PE Ratio of today is 23.03.

During the past 13 years, the highest Shiller PE Ratio of Allegiant Travel Co was 65.23. The lowest was 19.13. And the median was 38.41.


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.

Allegiant Travel Co 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 0.00 0.00 2.85 4.10 5.49

Allegiant Travel Co 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 4.90 5.19 5.49 5.73 6.03

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, Allegiant Travel Co'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)
=2.94/244.955*244.955
=2.940

Current CPI (Jun. 2017) = 244.955.

Allegiant Travel Co Quarterly Data

per share eps CPI Adj_EPS
200709 0.340 208.490 0.399
200712 0.230 210.036 0.268
200803 0.470 213.528 0.539
200806 0.130 218.815 0.146
200809 0.240 218.783 0.269
200812 0.890 210.228 1.037
200903 1.370 212.709 1.578
200906 1.170 215.693 1.329
200909 0.680 215.969 0.771
200912 0.530 215.949 0.601
201003 1.120 217.631 1.261
201006 0.870 217.965 0.978
201009 0.670 218.439 0.751
201012 0.650 219.179 0.726
201103 0.890 223.467 0.976
201106 0.620 225.722 0.673
201109 0.490 226.889 0.529
201112 0.560 225.672 0.608
201203 1.120 229.392 1.196
201206 1.300 229.478 1.388
201209 0.870 231.407 0.921
201212 0.770 229.601 0.821
201303 1.650 232.773 1.736
201306 1.340 233.504 1.406
201309 0.910 234.149 0.952
201312 0.920 233.049 0.967
201403 1.860 236.293 1.928
201406 1.860 238.343 1.912
201409 0.800 238.031 0.823
201412 0.310 234.812 0.323
201503 3.740 236.119 3.880
201506 3.180 238.638 3.264
201509 2.620 237.945 2.697
201512 3.390 236.525 3.511
201603 4.290 238.132 4.413
201606 3.680 241.018 3.740
201609 2.750 241.428 2.790
201612 2.480 241.432 2.516
201703 2.500 243.801 2.512
201706 2.940 244.955 2.940

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.

Allegiant Travel Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=138.90/6.03
=23.03

* 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 Allegiant Travel Co was 65.23. The lowest was 19.13. And the median was 38.41.


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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