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Brady Corp  (NYSE:BRC) E10: $0.71 (As of Oct. 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.

Brady Corp's adjusted earnings per share data for the three months ended in Oct. 2017 was $0.490. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.71 for the trailing ten years ended in Oct. 2017.

As of today, Brady Corp's current stock price is $38.10. Brady Corp's E10 for the quarter that ended in Oct. 2017 was $0.71. Brady Corp's Shiller PE Ratio of today is 53.66.

During the past 13 years, the highest Shiller PE Ratio of Brady Corp was 54.58. The lowest was 10.52. And the median was 23.25.


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.

Brady Corp Annual Data

Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.25 1.05 0.85 0.77 0.74

Brady Corp Quarterly Data

Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17
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 0.74 0.76 0.74 0.74 0.71

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, Brady Corp's adjusted earnings per share data for the three months ended in Oct. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Oct. 2017 (Change)*Current CPI (Oct. 2017)
=0.49/247.469*247.469
=0.490

Current CPI (Oct. 2017) = 247.469.

Brady Corp Quarterly Data

per share eps CPI Adj_EPS
200801 0.480 211.080 0.563
200804 0.630 214.823 0.726
200807 0.640 219.964 0.720
200810 0.690 216.573 0.788
200901 -0.080 211.143 -0.094
200904 0.340 213.240 0.395
200907 0.360 215.351 0.414
200910 0.410 216.177 0.469
201001 0.280 216.687 0.320
201004 0.450 218.009 0.511
201007 0.410 218.011 0.465
201010 0.500 218.711 0.566
201101 0.460 220.223 0.517
201104 0.540 224.906 0.594
201107 0.570 225.922 0.624
201110 0.600 226.421 0.656
201201 -1.720 226.665 -1.878
201204 0.520 230.085 0.559
201207 0.229 229.104 0.247
201210 0.530 231.317 0.567
201301 -0.170 230.280 -0.183
201304 0.081 232.531 0.086
201307 -3.464 233.596 -3.670
201310 0.460 233.546 0.487
201401 0.310 233.916 0.328
201404 0.460 237.072 0.480
201407 -2.130 238.250 -2.212
201410 0.260 237.433 0.271
201501 0.230 233.707 0.244
201504 0.330 236.599 0.345
201507 -0.770 238.654 -0.798
201510 0.370 237.838 0.385
201601 0.300 236.916 0.313
201604 0.420 239.261 0.434
201607 0.500 240.628 0.514
201610 0.440 241.729 0.450
201701 0.490 242.839 0.499
201704 0.430 244.524 0.435
201707 0.480 244.786 0.485
201710 0.490 247.469 0.490

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.

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

Shiller PE Ratio=Share Price/E10
=38.10/0.71
=53.66

* 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 Brady Corp was 54.58. The lowest was 10.52. And the median was 23.25.


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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