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Cintas Corp  (NAS:CTAS) E10: $3.26 (As of Nov. 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.

Cintas Corp's adjusted earnings per share data for the three months ended in Nov. 2017 was $1.230. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.26 for the trailing ten years ended in Nov. 2017.

As of today, Cintas Corp's current stock price is $161.84. Cintas Corp's E10 for the quarter that ended in Nov. 2017 was $3.26. Cintas Corp's Shiller PE Ratio of today is 49.64.

During the past 13 years, the highest Shiller PE Ratio of Cintas Corp was 49.66. The lowest was 10.31. And the median was 21.80.


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.

Cintas Corp Annual Data

May08 May09 May10 May11 May12 May13 May14 May15 May16 May17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.07 2.22 2.37 2.79 3.04

Cintas Corp Quarterly Data

Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17
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 2.95 3.03 3.04 3.20 3.26

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

Adj_EPS= Earnings per Share (Diluted) /CPI of Nov. 2017 (Change)*Current CPI (Nov. 2017)
=1.23/246.669*246.669
=1.230

Current CPI (Nov. 2017) = 246.669.

Cintas Corp Quarterly Data

per share eps CPI Adj_EPS
200802 0.530 211.693 0.618
200805 0.580 216.632 0.660
200808 0.510 219.086 0.574
200811 0.470 212.425 0.546
200902 0.470 212.193 0.546
200905 0.030 213.856 0.035
200908 0.350 215.834 0.400
200911 0.370 216.330 0.422
201002 0.320 216.741 0.364
201005 0.360 218.178 0.407
201008 0.400 218.312 0.452
201011 0.380 218.803 0.428
201102 0.410 221.309 0.457
201105 0.490 225.964 0.535
201108 0.520 226.545 0.566
201111 0.570 226.230 0.621
201202 0.580 227.663 0.628
201205 0.600 229.815 0.644
201208 0.600 230.379 0.642
201211 0.630 230.221 0.675
201302 0.600 232.166 0.637
201305 0.690 232.945 0.731
201308 0.630 233.877 0.664
201311 0.700 233.069 0.741
201402 0.690 234.781 0.725
201405 1.030 237.900 1.068
201408 0.930 237.852 0.964
201411 1.000 236.151 1.045
201502 0.800 234.722 0.841
201505 0.900 237.805 0.934
201508 0.880 238.316 0.911
201511 3.060 237.336 3.180
201602 1.050 237.111 1.092
201605 1.210 240.229 1.242
201608 1.260 240.849 1.290
201611 1.290 241.353 1.318
201702 1.070 243.603 1.083
201705 0.760 244.733 0.766
201708 1.960 245.519 1.969
201711 1.230 246.669 1.230

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.

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

Shiller PE Ratio=Share Price/E10
=161.84/3.26
=49.64

* 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 Cintas Corp was 49.66. The lowest was 10.31. And the median was 21.80.


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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