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Forestar Group Inc  (NYSE:FOR) E10: $0.08 (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.

Forestar Group Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.060. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.08 for the trailing ten years ended in Sep. 2017.

As of today, Forestar Group Inc's current stock price is $20.95. Forestar Group Inc's E10 for the quarter that ended in Sep. 2017 was $0.08. Forestar Group Inc's Shiller PE Ratio of today is 261.88.

During the past 13 years, the highest Shiller PE Ratio of Forestar Group Inc was 285.62. The lowest was 156.43. And the median was 216.25.


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.

Forestar 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 0.00 0.00 0.00 0.00 0.00

Forestar 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 0.07 0.00 0.06 0.00 0.08

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, Forestar 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)
=1.06/246.819*246.819
=1.060

Current CPI (Sep. 2017) = 246.819.

Forestar Group Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.000 210.036 0.000
200803 -0.010 213.528 -0.012
200806 0.270 218.815 0.305
200809 0.020 218.783 0.023
200812 0.050 210.228 0.059
200903 -0.110 212.709 -0.128
200906 1.410 215.693 1.613
200909 0.540 215.969 0.617
200912 -0.210 215.949 -0.240
201003 -0.080 217.631 -0.091
201006 -0.090 217.965 -0.102
201009 0.250 218.439 0.282
201012 0.070 219.179 0.079
201103 -0.070 223.467 -0.077
201106 -0.110 225.722 -0.120
201109 1.020 226.889 1.110
201112 -0.650 225.672 -0.711
201203 0.080 229.392 0.086
201206 0.020 229.478 0.022
201209 -0.020 231.407 -0.021
201212 0.280 229.601 0.301
201303 0.110 232.773 0.117
201306 0.020 233.504 0.021
201309 0.330 234.149 0.348
201312 0.350 233.049 0.371
201403 0.190 236.293 0.198
201406 0.340 238.343 0.352
201409 0.120 238.031 0.124
201412 -0.280 234.812 -0.294
201503 -0.240 236.119 -0.251
201506 -1.010 238.638 -1.045
201509 -4.790 237.945 -4.969
201512 -0.180 236.525 -0.188
201603 -0.130 238.132 -0.135
201606 0.230 241.018 0.236
201609 0.230 241.428 0.235
201612 1.030 241.432 1.053
201703 0.590 243.801 0.597
201706 -0.060 244.955 -0.060
201709 1.060 246.819 1.060

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.

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

Shiller PE Ratio=Share Price/E10
=20.95/0.08
=261.88

* 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 Forestar Group Inc was 285.62. The lowest was 156.43. And the median was 216.25.


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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