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Allstate Corp  (NYSE:ALL) E10: $3.51 (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.

Allstate Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.740. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.51 for the trailing ten years ended in Sep. 2017.

As of today, Allstate Corp's current stock price is $102.11. Allstate Corp's E10 for the quarter that ended in Sep. 2017 was $3.51. Allstate Corp's Shiller PE Ratio of today is 29.09.

During the past 13 years, the highest Shiller PE Ratio of Allstate Corp was 29.83. The lowest was 4.09. And the median was 12.23.


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.

Allstate Corp 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 3.74 3.77 3.86 4.08 3.69

Allstate Corp 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 3.71 3.69 3.62 3.50 3.51

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, Allstate Corp'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)
=1.74/246.819*246.819
=1.740

Current CPI (Sep. 2017) = 246.819.

Allstate Corp Quarterly Data

per share eps CPI Adj_EPS
200712 1.360 210.036 1.598
200803 0.620 213.528 0.717
200806 0.050 218.815 0.056
200809 -1.700 218.783 -1.918
200812 -2.060 210.228 -2.419
200903 -0.510 212.709 -0.592
200906 0.720 215.693 0.824
200909 0.410 215.969 0.469
200912 0.960 215.949 1.097
201003 0.220 217.631 0.250
201006 0.270 217.965 0.306
201009 0.680 218.439 0.768
201012 0.550 219.179 0.619
201103 0.980 223.467 1.082
201106 -1.190 225.722 -1.301
201109 0.340 226.889 0.370
201112 1.360 225.672 1.487
201203 1.530 229.392 1.646
201206 0.860 229.478 0.925
201209 1.480 231.407 1.579
201212 0.820 229.601 0.881
201303 1.470 232.773 1.559
201306 0.920 233.504 0.972
201309 0.660 234.149 0.696
201312 1.740 233.049 1.843
201403 1.300 236.293 1.358
201406 1.390 238.343 1.439
201409 1.740 238.031 1.804
201412 1.850 234.812 1.945
201503 1.530 236.119 1.599
201506 0.790 238.638 0.817
201509 1.540 237.945 1.597
201512 1.180 236.525 1.231
201603 0.570 238.132 0.591
201606 0.640 241.018 0.655
201609 1.310 241.428 1.339
201612 2.160 241.432 2.208
201703 1.790 243.801 1.812
201706 1.490 244.955 1.501
201709 1.740 246.819 1.740

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.

Allstate Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=102.11/3.51
=29.09

* 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 Allstate Corp was 29.83. The lowest was 4.09. And the median was 12.23.


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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