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Walt Disney Co  (NYSE:DIS) E10: \$3.71 (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.

Walt Disney Co's adjusted earnings per share data for the three months ended in Jun. 2017 was \$1.510. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is \$3.71 for the trailing ten years ended in Jun. 2017.

As of today, Walt Disney Co's current stock price is \$102.64. Walt Disney Co's E10 for the quarter that ended in Jun. 2017 was \$3.71. Walt Disney Co's Shiller PE Ratio of today is 27.67.

During the past 13 years, the highest Shiller PE Ratio of Walt Disney Co was 41.24. The lowest was 13.42. And the median was 28.24.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Walt Disney Co Annual Data

 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 E10 2.30 2.64 2.99 3.40 3.81

Walt Disney Co Quarterly Data

 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 E10 3.40 3.46 3.59 3.71 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, Walt Disney Co'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) = 1.51 / 244.955 * 244.955 = 1.510

Current CPI (Jun. 2017) = 244.955.

Walt Disney Co Quarterly Data

 per share eps CPI Adj_EPS 200709 0.440 208.490 0.517 200712 0.630 210.036 0.735 200803 0.580 213.528 0.665 200806 0.660 218.815 0.739 200809 0.410 218.783 0.459 200812 0.450 210.228 0.524 200903 0.330 212.709 0.380 200906 0.510 215.693 0.579 200909 0.470 215.969 0.533 200912 0.440 215.949 0.499 201003 0.480 217.631 0.540 201006 0.670 217.965 0.753 201009 0.430 218.439 0.482 201012 0.680 219.179 0.760 201103 0.490 223.467 0.537 201106 0.770 225.722 0.836 201109 0.590 226.889 0.637 201112 0.800 225.672 0.868 201203 0.630 229.392 0.673 201206 1.010 229.478 1.078 201209 0.690 231.407 0.730 201212 0.770 229.601 0.821 201303 0.830 232.773 0.873 201306 1.010 233.504 1.060 201309 0.770 234.149 0.806 201312 1.030 233.049 1.083 201403 1.080 236.293 1.120 201406 1.280 238.343 1.316 201409 0.860 238.031 0.885 201412 1.270 234.812 1.325 201503 1.230 236.119 1.276 201506 1.450 238.638 1.488 201509 0.950 237.945 0.978 201512 1.730 236.525 1.792 201603 1.300 238.132 1.337 201606 1.590 241.018 1.616 201609 1.100 241.428 1.116 201612 1.550 241.432 1.573 201703 1.500 243.801 1.507 201706 1.510 244.955 1.510

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.

Walt Disney Co's Shiller P/E Ratio of today is calculated as

 Shiller PE Ratio = Share Price / E10 = 102.64 / 3.71 = 27.67

* 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 Walt Disney Co was 41.24. The lowest was 13.42. And the median was 28.24.

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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