Switch to:
Carbo Ceramics Inc  (NYSE:CRR) E10: $1.27 (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.

Carbo Ceramics Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $-6.690. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.27 for the trailing ten years ended in Sep. 2017.

As of today, Carbo Ceramics Inc's current stock price is $9.79. Carbo Ceramics Inc's E10 for the quarter that ended in Sep. 2017 was $1.27. Carbo Ceramics Inc's Shiller PE Ratio of today is 7.71.

During the past 13 years, the highest Shiller PE Ratio of Carbo Ceramics Inc was 69.77. The lowest was 2.57. And the median was 26.36.


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.

Carbo Ceramics 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 3.20 3.47 3.49 2.82 2.28

Carbo Ceramics 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 2.41 2.28 2.12 1.98 1.27

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, Carbo Ceramics 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)
=-6.69/246.819*246.819
=-6.690

Current CPI (Sep. 2017) = 246.819.

Carbo Ceramics Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.560 210.036 0.658
200803 0.580 213.528 0.670
200806 0.550 218.815 0.620
200809 0.750 218.783 0.846
200812 2.630 210.228 3.088
200903 0.700 212.709 0.812
200906 0.410 215.693 0.469
200909 0.620 215.969 0.709
200912 0.540 215.949 0.617
201003 0.820 217.631 0.930
201006 0.810 217.965 0.917
201009 0.870 218.439 0.983
201012 0.900 219.179 1.013
201103 1.300 223.467 1.436
201106 1.290 225.722 1.411
201109 1.590 226.889 1.730
201112 1.430 225.672 1.564
201203 1.310 229.392 1.410
201206 1.380 229.478 1.484
201209 1.040 231.407 1.109
201212 0.860 229.601 0.924
201303 0.760 232.773 0.806
201306 0.710 233.504 0.750
201309 1.310 234.149 1.381
201312 0.900 233.049 0.953
201403 0.800 236.293 0.836
201406 1.000 238.343 1.036
201409 0.600 238.031 0.622
201412 0.020 234.812 0.021
201503 -1.240 236.119 -1.296
201506 -0.740 238.638 -0.765
201509 -0.600 237.945 -0.622
201512 -2.170 236.525 -2.264
201603 -1.070 238.132 -1.109
201606 -0.880 241.018 -0.901
201609 -0.810 241.428 -0.828
201612 -0.540 241.432 -0.552
201703 -1.220 243.801 -1.235
201706 -0.930 244.955 -0.937
201709 -6.690 246.819 -6.690

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.

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

Shiller PE Ratio=Share Price/E10
=9.79/1.27
=7.71

* 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 Carbo Ceramics Inc was 69.77. The lowest was 2.57. And the median was 26.36.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Related Terms


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK