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Esterline Technologies Corp  (NYSE:ESL) E10: $4.17 (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.

Esterline Technologies Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was $1.010. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.17 for the trailing ten years ended in Jun. 2017.

As of today, Esterline Technologies Corp's current stock price is $71.65. Esterline Technologies Corp's E10 for the quarter that ended in Jun. 2017 was $4.17. Esterline Technologies Corp's Shiller PE Ratio of today is 17.18.

During the past 13 years, the highest Shiller PE Ratio of Esterline Technologies Corp was 30.58. The lowest was 8.94. And the median was 21.68.


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.

Esterline Technologies Corp Annual Data

Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Sep15 Sep16 Sep17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.85 4.01 0.00 4.14 0.00

Esterline Technologies Corp Quarterly Data

Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 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 4.14 4.14 4.20 4.17 0.00

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, Esterline Technologies Corp'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)
=1.01/244.955*244.955
=1.010

Current CPI (Jun. 2017) = 244.955.

Esterline Technologies Corp Quarterly Data

per share eps CPI Adj_EPS
200710 0.780 208.936 0.914
200801 1.040 211.080 1.207
200804 0.840 214.823 0.958
200807 0.680 219.964 0.757
200810 1.470 216.573 1.663
200901 0.900 211.143 1.044
200904 0.860 213.240 0.988
200907 1.090 215.351 1.240
200910 1.140 216.177 1.292
201001 0.420 216.687 0.475
201004 0.980 218.009 1.101
201007 1.300 218.011 1.461
201010 1.950 218.711 2.184
201101 0.970 220.223 1.079
201104 1.470 224.906 1.601
201107 1.210 225.922 1.312
201110 0.620 226.421 0.671
201201 0.730 226.665 0.789
201204 1.440 230.085 1.533
201207 -0.550 229.104 -0.588
201210 1.970 231.317 2.086
201301 0.800 230.280 0.851
201304 1.120 232.531 1.180
201307 1.200 233.596 1.258
201310 2.070 233.546 2.171
201401 0.930 233.916 0.974
201404 1.140 237.072 1.178
201407 1.190 238.250 1.223
201410 -0.110 237.433 -0.113
201501 0.260 233.707 0.273
201504 0.630 236.599 0.652
201507 0.920 238.654 0.944
201509 0.000 237.945 0.000
201512 0.170 236.525 0.176
201603 0.500 238.132 0.514
201606 0.990 241.018 1.006
201609 1.760 241.428 1.786
201612 0.540 241.432 0.548
201703 1.170 243.801 1.176
201706 1.010 244.955 1.010

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.

Esterline Technologies Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=71.65/4.17
=17.18

* 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 Esterline Technologies Corp was 30.58. The lowest was 8.94. And the median was 21.68.


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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