Switch to:
CSX Corp  (NAS:CSX) E10: $1.75 (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.

CSX Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.510. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.75 for the trailing ten years ended in Sep. 2017.

As of today, CSX Corp's current stock price is $49.92. CSX Corp's E10 for the quarter that ended in Sep. 2017 was $1.75. CSX Corp's Shiller PE Ratio of today is 28.53.

During the past 13 years, the highest Shiller PE Ratio of CSX Corp was 46.98. The lowest was 13.33. And the median was 23.83.


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.

CSX 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 1.09 1.27 1.43 1.54 1.64

CSX 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 1.62 1.64 1.67 1.71 1.75

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, CSX 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)
=0.51/246.819*246.819
=0.510

Current CPI (Sep. 2017) = 246.819.

CSX Corp Quarterly Data

per share eps CPI Adj_EPS
200712 0.287 210.036 0.337
200803 0.283 213.528 0.327
200806 0.310 218.815 0.350
200809 0.313 218.783 0.353
200812 0.210 210.228 0.247
200903 0.207 212.709 0.240
200906 0.257 215.693 0.294
200909 0.243 215.969 0.278
200912 0.257 215.949 0.294
201003 0.260 217.631 0.295
201006 0.360 217.965 0.408
201009 0.360 218.439 0.407
201012 0.380 219.179 0.428
201103 0.350 223.467 0.387
201106 0.460 225.722 0.503
201109 0.430 226.889 0.468
201112 0.460 225.672 0.503
201203 0.430 229.392 0.463
201206 0.490 229.478 0.527
201209 0.440 231.407 0.469
201212 0.430 229.601 0.462
201303 0.450 232.773 0.477
201306 0.510 233.504 0.539
201309 0.450 234.149 0.474
201312 0.420 233.049 0.445
201403 0.400 236.293 0.418
201406 0.530 238.343 0.549
201409 0.510 238.031 0.529
201412 0.490 234.812 0.515
201503 0.450 236.119 0.470
201506 0.560 238.638 0.579
201509 0.520 237.945 0.539
201512 0.480 236.525 0.501
201603 0.370 238.132 0.383
201606 0.470 241.018 0.481
201609 0.480 241.428 0.491
201612 0.490 241.432 0.501
201703 0.390 243.801 0.395
201706 0.550 244.955 0.554
201709 0.510 246.819 0.510

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.

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

Shiller PE Ratio=Share Price/E10
=49.92/1.75
=28.53

* 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 CSX Corp was 46.98. The lowest was 13.33. And the median was 23.83.


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

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