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Westinghouse Air Brake Technologies (FRA:WB2) E10 : €3.55 (As of Sep. 2024)


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What is Westinghouse Air Brake Technologies E10?

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.

Westinghouse Air Brake Technologies's adjusted earnings per share data for the three months ended in Sep. 2024 was €1.469. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €3.55 for the trailing ten years ended in Sep. 2024.

During the past 12 months, Westinghouse Air Brake Technologies's average E10 Growth Rate was 6.40% per year. During the past 3 years, the average E10 Growth Rate was 7.20% per year. During the past 5 years, the average E10 Growth Rate was 6.10% per year. During the past 10 years, the average E10 Growth Rate was 8.70% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Westinghouse Air Brake Technologies was 24.20% per year. The lowest was -1.30% per year. And the median was 9.40% per year.

As of today (2024-12-12), Westinghouse Air Brake Technologies's current stock price is €195.90. Westinghouse Air Brake Technologies's E10 for the quarter that ended in Sep. 2024 was €3.55. Westinghouse Air Brake Technologies's Shiller PE Ratio of today is 55.18.

During the past 13 years, the highest Shiller PE Ratio of Westinghouse Air Brake Technologies was 53.06. The lowest was 13.86. And the median was 29.22.


Westinghouse Air Brake Technologies E10 Historical Data

The historical data trend for Westinghouse Air Brake Technologies's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Westinghouse Air Brake Technologies E10 Chart

Westinghouse Air Brake Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.63 2.43 2.94 3.33 3.38

Westinghouse Air Brake Technologies Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
E10 Get a 7-Day Free Trial 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 3.57 3.38 3.55 3.65 3.55

Competitive Comparison of Westinghouse Air Brake Technologies's E10

For the Railroads subindustry, Westinghouse Air Brake Technologies's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


Westinghouse Air Brake Technologies's Shiller PE Ratio Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Westinghouse Air Brake Technologies's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Westinghouse Air Brake Technologies's Shiller PE Ratio falls into.



Westinghouse Air Brake Technologies E10 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.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Westinghouse Air Brake Technologies's adjusted earnings per share data for the three months ended in Sep. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=1.469/133.0289*133.0289
=1.469

Current CPI (Sep. 2024) = 133.0289.

Westinghouse Air Brake Technologies Quarterly Data

per share eps CPI Adj_EPS
201412 0.770 99.070 1.034
201503 0.915 99.621 1.222
201506 0.927 100.684 1.225
201509 0.909 100.392 1.205
201512 0.964 99.792 1.285
201603 0.916 100.470 1.213
201606 0.890 101.688 1.164
201609 0.811 101.861 1.059
201612 0.398 101.863 0.520
201703 0.720 102.862 0.931
201706 0.668 103.349 0.860
201709 0.587 104.136 0.750
201712 0.431 104.011 0.551
201803 0.746 105.290 0.943
201806 0.745 106.317 0.932
201809 0.780 106.507 0.974
201812 0.316 105.998 0.397
201903 -0.035 107.251 -0.043
201906 0.478 108.070 0.588
201909 0.436 108.329 0.535
201912 0.639 108.420 0.784
202003 0.525 108.902 0.641
202006 0.408 108.767 0.499
202009 0.569 109.815 0.689
202012 0.378 109.897 0.458
202103 0.496 111.754 0.590
202106 0.548 114.631 0.636
202109 0.587 115.734 0.675
202112 0.903 117.630 1.021
202203 0.726 121.301 0.796
202206 0.861 125.017 0.916
202209 0.889 125.227 0.944
202212 0.812 125.222 0.863
202303 0.869 127.348 0.908
202306 0.978 128.729 1.011
202309 1.246 129.860 1.276
202312 1.100 129.419 1.131
202403 1.408 131.776 1.421
202406 1.524 132.554 1.529
202409 1.469 133.029 1.469

Add all the adjusted EPS together and divide 10 will get our e10.


Westinghouse Air Brake Technologies  (FRA:WB2) 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.

Westinghouse Air Brake Technologies's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=195.90/3.55
=55.18

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Shiller P/E Ratio of Westinghouse Air Brake Technologies was 53.06. The lowest was 13.86. And the median was 29.22.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Westinghouse Air Brake Technologies E10 Related Terms

Thank you for viewing the detailed overview of Westinghouse Air Brake Technologies's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Westinghouse Air Brake Technologies Business Description

Traded in Other Exchanges
Address
30 Isabella Street, Pittsburgh, PA, USA, 15212
Westinghouse Air Brake Technologies Corp is a provider of value-added, technology-based products and services for the freight rail and passenger transit industries, and the mining, marine, and industrial markets. It provides its products and services through two main business segments, Freight and Transit. The company generates maximum revenue from the Freight segment which manufactures new and modernized locomotives, provides aftermarket parts and services to existing locomotives; provides components to new and existing freight cars; builds new commuter locomotives; supplies rail control and infrastructure products including electronics, positive train control equipment, signal design and engineering services. Geographically, it generates a majority of its revenue from the United States.

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