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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.

* Premium members only.

Walt Disney Co Annual Data

Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 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 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 3.40 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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