Switch to:
DineEquity Inc  (NYSE:DIN) E10: $1.54 (As of Jun. 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.

DineEquity Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $1.180. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.54 for the trailing ten years ended in Jun. 2017.

As of today, DineEquity Inc's current stock price is $45.83. DineEquity Inc's E10 for the quarter that ended in Jun. 2017 was $1.54. DineEquity Inc's Shiller PE Ratio of today is 29.76.

During the past 13 years, the highest Shiller PE Ratio of DineEquity Inc was 294.05. The lowest was 3.70. And the median was 69.87.


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.

DineEquity 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 0.77 0.93 0.93 1.21 1.48

DineEquity Inc Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 1.37 1.43 1.48 1.50 1.54

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, DineEquity Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=1.18/244.955*244.955
=1.180

Current CPI (Jun. 2017) = 244.955.

DineEquity Inc Quarterly Data

per share eps CPI Adj_EPS
200709 -0.690 208.490 -0.811
200712 -0.930 210.036 -1.085
200803 0.500 213.528 0.574
200806 -1.420 218.815 -1.590
200809 -0.980 218.783 -1.097
200812 -8.180 210.228 -9.531
200903 1.800 212.709 2.073
200906 1.090 215.693 1.238
200909 0.460 215.969 0.522
200912 -2.840 215.949 -3.221
201003 0.750 217.631 0.844
201006 0.420 217.965 0.472
201009 0.440 218.439 0.493
201012 -3.370 219.179 -3.766
201103 1.530 223.467 1.677
201106 -0.020 225.722 -0.022
201109 0.850 226.889 0.918
201112 1.510 225.672 1.639
201203 1.640 229.392 1.751
201206 0.880 229.478 0.939
201209 3.140 231.407 3.324
201212 0.970 229.601 1.035
201303 0.930 232.773 0.979
201306 0.870 233.504 0.913
201309 0.970 234.149 1.015
201312 0.940 233.049 0.988
201403 1.080 236.293 1.120
201406 1.000 238.343 1.028
201409 0.990 238.031 1.019
201412 -1.170 234.812 -1.221
201503 1.470 236.119 1.525
201506 1.400 238.638 1.437
201509 1.280 237.945 1.318
201512 1.360 236.525 1.408
201603 1.370 238.132 1.409
201606 1.450 241.018 1.474
201609 1.330 241.428 1.349
201612 1.180 241.432 1.197
201703 0.790 243.801 0.794
201706 1.180 244.955 1.180

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.

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

Shiller PE Ratio=Share Price/E10
=45.83/1.54
=29.76

* 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 DineEquity Inc was 294.05. The lowest was 3.70. And the median was 69.87.


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

From the Internet

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