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Andersons Inc  (NAS:ANDE) E10: $1.99 (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.

Andersons Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $-0.940. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.99 for the trailing ten years ended in Jun. 2017.

As of today, Andersons Inc's current stock price is $36.85. Andersons Inc's E10 for the quarter that ended in Jun. 2017 was $1.99. Andersons Inc's Shiller PE Ratio of today is 18.52.

During the past 13 years, the highest Shiller PE Ratio of Andersons Inc was 41.80. The lowest was 7.03. And the median was 18.16.


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.

Andersons 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 1.89 2.15 2.45 2.29 2.20

Andersons 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 2.26 2.23 2.20 2.17 1.99

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, Andersons 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)
=-0.94/244.955*244.955
=-0.940

Current CPI (Jun. 2017) = 244.955.

Andersons Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.387 208.490 0.455
200712 0.847 210.036 0.988
200803 0.280 213.528 0.321
200806 1.653 218.815 1.850
200809 0.467 218.783 0.523
200812 -1.227 210.228 -1.430
200903 0.180 212.709 0.207
200906 0.580 215.693 0.659
200909 0.047 215.969 0.053
200912 0.587 215.949 0.666
201003 0.440 217.631 0.495
201006 0.907 217.965 1.019
201009 0.053 218.439 0.059
201012 0.927 219.179 1.036
201103 0.620 223.467 0.680
201106 1.613 225.722 1.750
201109 0.393 226.889 0.424
201112 0.777 225.672 0.843
201203 0.653 229.392 0.697
201206 1.040 229.478 1.110
201209 0.600 231.407 0.635
201212 0.533 229.601 0.569
201303 0.450 232.773 0.474
201306 1.050 233.504 1.101
201309 0.610 234.149 0.638
201312 1.080 233.049 1.135
201403 0.800 236.293 0.829
201406 1.560 238.343 1.603
201409 0.590 238.031 0.607
201412 0.890 234.812 0.928
201503 0.140 236.119 0.145
201506 1.090 238.638 1.119
201509 -0.040 237.945 -0.041
201512 -1.650 236.525 -1.709
201603 -0.520 238.132 -0.535
201606 0.510 241.018 0.518
201609 0.060 241.428 0.061
201612 0.360 241.432 0.365
201703 -0.110 243.801 -0.111
201706 -0.940 244.955 -0.940

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.

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

Shiller PE Ratio=Share Price/E10
=36.85/1.99
=18.52

* 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 Andersons Inc was 41.80. The lowest was 7.03. And the median was 18.16.


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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