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Amcon Distributing Co  (AMEX:DIT) E10: $9.98 (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.

Amcon Distributing Co's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.480. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $9.98 for the trailing ten years ended in Sep. 2017.

As of today, Amcon Distributing Co's current stock price is $87.50. Amcon Distributing Co's E10 for the quarter that ended in Sep. 2017 was $9.98. Amcon Distributing Co's Shiller PE Ratio of today is 8.77.

During the past 13 years, the highest Shiller PE Ratio of Amcon Distributing Co was 7250.00. The lowest was 7.78. And the median was 23.91.


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.

Amcon Distributing 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 3.19 4.88 8.62 9.86 9.98

Amcon Distributing 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 9.86 9.84 10.00 9.96 9.98

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, Amcon Distributing Co'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)
=1.48/246.819*246.819
=1.480

Current CPI (Sep. 2017) = 246.819.

Amcon Distributing Co Quarterly Data

per share eps CPI Adj_EPS
200712 1.120 210.036 1.316
200803 1.370 213.528 1.584
200806 1.630 218.815 1.839
200809 2.140 218.783 2.414
200812 1.520 210.228 1.785
200903 2.600 212.709 3.017
200906 9.570 215.693 10.951
200909 3.590 215.969 4.103
200912 2.320 215.949 2.652
201003 2.400 217.631 2.722
201006 3.670 217.965 4.156
201009 3.600 218.439 4.068
201012 2.410 219.179 2.714
201103 2.050 223.467 2.264
201106 2.360 225.722 2.581
201109 3.630 226.889 3.949
201112 1.830 225.672 2.001
201203 1.870 229.392 2.012
201206 2.370 229.478 2.549
201209 3.340 231.407 3.562
201212 1.900 229.601 2.042
201303 1.630 232.773 1.728
201306 2.190 233.504 2.315
201309 2.060 234.149 2.171
201312 1.730 233.049 1.832
201403 0.720 236.293 0.752
201406 1.730 238.343 1.792
201409 2.570 238.031 2.665
201412 2.110 234.812 2.218
201503 1.040 236.119 1.087
201506 2.690 238.638 2.782
201509 2.740 237.945 2.842
201512 1.850 236.525 1.931
201603 1.610 238.132 1.669
201606 2.620 241.018 2.683
201609 2.310 241.428 2.362
201612 1.520 241.432 1.554
201703 0.710 243.801 0.719
201706 0.560 244.955 0.564
201709 1.480 246.819 1.480

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.

Amcon Distributing Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=87.50/9.98
=8.77

* 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 Amcon Distributing Co was 7250.00. The lowest was 7.78. And the median was 23.91.


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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