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First United Corp  (NAS:FUNC) E10: $0.38 (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.

First United Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.300. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.38 for the trailing ten years ended in Jun. 2017.

As of today, First United Corp's current stock price is $17.20. First United Corp's E10 for the quarter that ended in Jun. 2017 was $0.38. First United Corp's Shiller PE Ratio of today is 45.26.

During the past 13 years, the highest Shiller PE Ratio of First United Corp was 45.26. The lowest was 2.62. And the median was 10.20.


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.

First United 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 0.88 0.74 0.64 0.57 0.42

First United Corp Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 0.51 0.47 0.42 0.41 0.38

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, First United 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)
=0.3/244.955*244.955
=0.300

Current CPI (Jun. 2017) = 244.955.

First United Corp Quarterly Data

per share eps CPI Adj_EPS
200709 0.576 208.490 0.677
200712 0.645 210.036 0.752
200803 0.506 213.528 0.580
200806 0.675 218.815 0.756
200809 0.298 218.783 0.334
200812 -0.040 210.228 -0.047
200903 0.347 212.709 0.400
200906 0.119 215.693 0.135
200909 -0.963 215.969 -1.092
200912 -1.558 215.949 -1.767
201003 -0.893 217.631 -1.005
201006 -0.208 217.965 -0.234
201009 -0.010 218.439 -0.011
201012 -0.784 219.179 -0.876
201103 0.089 223.467 0.098
201106 0.119 225.722 0.129
201109 0.050 226.889 0.054
201112 0.069 225.672 0.075
201203 -0.496 229.392 -0.530
201206 0.198 229.478 0.211
201209 0.397 231.407 0.420
201212 0.377 229.601 0.402
201303 0.238 232.773 0.250
201306 0.228 233.504 0.239
201309 0.218 234.149 0.228
201312 0.069 233.049 0.073
201403 0.149 236.293 0.154
201406 0.069 238.343 0.071
201409 0.099 238.031 0.102
201412 0.159 234.812 0.166
201503 0.109 236.119 0.113
201506 0.079 238.638 0.081
201509 0.198 237.945 0.204
201512 1.263 236.525 1.308
201603 0.190 238.132 0.195
201606 0.200 241.018 0.203
201609 0.288 241.428 0.292
201612 0.165 241.432 0.167
201703 0.220 243.801 0.221
201706 0.300 244.955 0.300

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.

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

Shiller PE Ratio=Share Price/E10
=17.20/0.38
=45.26

* 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 First United Corp was 45.26. The lowest was 2.62. And the median was 10.20.


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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