Switch to:
Capital Southwest Corp  (NAS:CSWC) E10: $3.81 (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.

Capital Southwest Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.540. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.81 for the trailing ten years ended in Sep. 2017.

As of today, Capital Southwest Corp's current stock price is $16.93. Capital Southwest Corp's E10 for the quarter that ended in Sep. 2017 was $3.81. Capital Southwest Corp's Shiller PE Ratio of today is 4.44.

During the past 13 years, the highest Shiller PE Ratio of Capital Southwest Corp was 7.88. The lowest was 2.04. And the median was 3.98.


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.

Capital Southwest Corp Annual Data

Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.33 4.41 4.59 3.84 2.76

Capital Southwest 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 3.90 2.86 2.76 2.69 3.81

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, Capital Southwest 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)
=0.54/246.819*246.819
=0.540

Current CPI (Sep. 2017) = 246.819.

Capital Southwest Corp Quarterly Data

per share eps CPI Adj_EPS
200712 -4.081 210.036 -4.796
200803 2.756 213.528 3.186
200806 0.022 218.815 0.025
200809 -2.044 218.783 -2.306
200812 -3.134 210.228 -3.679
200903 -4.085 212.709 -4.740
200906 0.608 215.693 0.696
200909 1.963 215.969 2.243
200912 0.183 215.949 0.209
201003 2.161 217.631 2.451
201006 0.598 217.965 0.677
201009 1.601 218.439 1.809
201012 -0.513 219.179 -0.578
201103 1.690 223.467 1.867
201106 -0.780 225.722 -0.853
201109 -1.703 226.889 -1.853
201112 3.300 225.672 3.609
201203 22.953 229.392 24.697
201206 -5.430 229.478 -5.840
201209 3.230 231.407 3.445
201212 1.856 229.601 1.995
201303 2.681 232.773 2.843
201306 0.606 233.504 0.641
201309 2.911 234.149 3.069
201312 3.898 233.049 4.128
201403 -0.090 236.293 -0.094
201406 1.279 238.343 1.324
201409 -1.968 238.031 -2.041
201412 0.280 234.812 0.294
201503 3.330 236.119 3.481
201506 0.140 238.638 0.145
201509 -0.570 237.945 -0.591
201512 -0.070 236.525 -0.073
201603 0.160 238.132 0.166
201606 0.170 241.018 0.174
201609 0.440 241.428 0.450
201612 0.500 241.432 0.511
201703 0.370 243.801 0.375
201706 0.340 244.955 0.343
201709 0.540 246.819 0.540

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.

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

Shiller PE Ratio=Share Price/E10
=16.93/3.81
=4.44

* 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 Capital Southwest Corp was 7.88. The lowest was 2.04. And the median was 3.98.


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