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Waters Corp  (FRA:WAZ) E10: €4.41 (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.

Waters Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was €1.418. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €4.41 for the trailing ten years ended in Sep. 2017.

As of today, Waters Corp's current stock price is €170.38. Waters Corp's E10 for the quarter that ended in Sep. 2017 was €4.41. Waters Corp's Shiller PE Ratio of today is 38.63.

During the past 13 years, the highest Shiller PE Ratio of Waters Corp was 51.34. The lowest was 16.55. And the median was 30.07.


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.

Waters Corp 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 2.45 2.63 3.28 3.99 4.51

Waters Corp 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 4.09 4.51 4.58 4.39 4.41

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, Waters Corp'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)
=1.41790418659/246.819*246.819
=1.418

Current CPI (Sep. 2017) = 246.819.

Waters Corp Quarterly Data

per share eps CPI Adj_EPS
200712 0.666 210.036 0.783
200803 0.431 213.528 0.499
200806 0.527 218.815 0.595
200809 0.495 218.783 0.558
200812 0.740 210.228 0.869
200903 0.574 212.709 0.667
200906 0.514 215.693 0.588
200909 0.542 215.969 0.619
200912 0.741 215.949 0.847
201003 0.582 217.631 0.660
201006 0.736 217.965 0.834
201009 0.778 218.439 0.879
201012 1.021 219.179 1.149
201103 0.720 223.467 0.795
201106 0.743 225.722 0.812
201109 0.800 226.889 0.870
201112 1.148 225.672 1.255
201203 0.742 229.392 0.798
201206 0.869 229.478 0.934
201209 0.869 231.407 0.927
201212 1.524 229.601 1.638
201303 1.073 232.773 1.138
201306 0.781 233.504 0.825
201309 0.853 234.149 0.899
201312 1.197 233.049 1.268
201403 0.593 236.293 0.619
201406 0.832 238.343 0.861
201409 1.040 238.031 1.078
201412 1.444 234.812 1.517
201503 1.063 236.119 1.111
201506 1.132 238.638 1.170
201509 1.247 237.945 1.294
201512 1.680 236.525 1.753
201603 1.033 238.132 1.070
201606 1.397 241.018 1.431
201609 1.363 241.428 1.394
201612 2.038 241.432 2.084
201703 1.225 243.801 1.240
201706 1.451 244.955 1.462
201709 1.418 246.819 1.418

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.

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

Shiller PE Ratio=Share Price/E10
=170.38/4.41
=38.63

* 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 Waters Corp was 51.34. The lowest was 16.55. And the median was 30.07.


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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