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EMCOR Group Inc  (NYSE:EME) E10: $2.31 (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.

EMCOR Group Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.090. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.31 for the trailing ten years ended in Sep. 2017.

As of today, EMCOR Group Inc's current stock price is $79.11. EMCOR Group Inc's E10 for the quarter that ended in Sep. 2017 was $2.31. EMCOR Group Inc's Shiller PE Ratio of today is 34.25.

During the past 13 years, the highest Shiller PE Ratio of EMCOR Group Inc was 46.30. The lowest was 10.78. And the median was 25.15.


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.

EMCOR Group 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 1.39 1.55 1.74 1.91 2.09

EMCOR Group Inc 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 2.10 2.09 2.18 2.25 2.31

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, EMCOR Group Inc'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)
=1.09/246.819*246.819
=1.090

Current CPI (Sep. 2017) = 246.819.

EMCOR Group Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.750 210.036 0.881
200803 0.440 213.528 0.509
200806 0.650 218.815 0.733
200809 0.720 218.783 0.812
200812 0.890 210.228 1.045
200903 0.550 212.709 0.638
200906 0.670 215.693 0.767
200909 0.590 215.969 0.674
200912 0.570 215.949 0.651
201003 0.320 217.631 0.363
201006 0.400 217.965 0.453
201009 -2.640 218.439 -2.983
201012 0.600 219.179 0.676
201103 0.360 223.467 0.398
201106 0.420 225.722 0.459
201109 0.600 226.889 0.653
201112 0.540 225.672 0.591
201203 0.400 229.392 0.430
201206 0.490 229.478 0.527
201209 0.590 231.407 0.629
201212 0.680 229.601 0.731
201303 0.440 232.773 0.467
201306 0.310 233.504 0.328
201309 0.390 234.149 0.411
201312 0.680 233.049 0.720
201403 0.610 236.293 0.637
201406 0.590 238.343 0.611
201409 0.670 238.031 0.695
201412 0.660 234.812 0.694
201503 0.520 236.119 0.544
201506 0.740 238.638 0.765
201509 0.660 237.945 0.685
201512 0.810 236.525 0.845
201603 0.560 238.132 0.580
201606 0.900 241.018 0.922
201609 0.840 241.428 0.859
201612 0.670 241.432 0.685
201703 0.870 243.801 0.881
201706 0.950 244.955 0.957
201709 1.090 246.819 1.090

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.

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

Shiller PE Ratio=Share Price/E10
=79.11/2.31
=34.25

* 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 EMCOR Group Inc was 46.30. The lowest was 10.78. And the median was 25.15.


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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