Switch to:
Corning Inc  (NYSE:GLW) E10: $1.98 (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.

Corning Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.420. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.98 for the trailing ten years ended in Jun. 2017.

As of today, Corning Inc's current stock price is $30.01. Corning Inc's E10 for the quarter that ended in Jun. 2017 was $1.98. Corning Inc's Shiller PE Ratio of today is 15.16.

During the past 13 years, the highest Shiller PE Ratio of Corning Inc was 31.20. The lowest was 9.58. And the median was 12.98.


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.

Corning 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 1.11 1.29 1.67 1.73 1.95

Corning Inc 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 1.86 1.85 1.95 1.95 1.98

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, Corning Inc'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)
=0.42/244.955*244.955
=0.420

Current CPI (Jun. 2017) = 244.955.

Corning Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.380 208.490 0.446
200712 0.450 210.036 0.525
200803 0.640 213.528 0.734
200806 2.010 218.815 2.250
200809 0.490 218.783 0.549
200812 0.170 210.228 0.198
200903 0.010 212.709 0.012
200906 0.390 215.693 0.443
200909 0.410 215.969 0.465
200912 0.470 215.949 0.533
201003 0.520 217.631 0.585
201006 0.580 217.965 0.652
201009 0.500 218.439 0.561
201012 0.660 219.179 0.738
201103 0.470 223.467 0.515
201106 0.470 225.722 0.510
201109 0.510 226.889 0.551
201112 0.320 225.672 0.347
201203 0.310 229.392 0.331
201206 0.310 229.478 0.331
201209 0.360 231.407 0.381
201212 0.110 229.601 0.117
201303 0.330 232.773 0.347
201306 0.430 233.504 0.451
201309 0.280 234.149 0.293
201312 0.300 233.049 0.315
201403 0.200 236.293 0.207
201406 0.110 238.343 0.113
201409 0.720 238.031 0.741
201412 0.700 234.812 0.730
201503 0.290 236.119 0.301
201506 0.360 238.638 0.370
201509 0.150 237.945 0.154
201512 0.180 236.525 0.186
201603 -0.360 238.132 -0.370
201606 1.870 241.018 1.901
201609 0.260 241.428 0.264
201612 1.420 241.432 1.441
201703 0.070 243.801 0.070
201706 0.420 244.955 0.420

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.

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

Shiller PE Ratio=Share Price/E10
=30.01/1.98
=15.16

* 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 Corning Inc was 31.20. The lowest was 9.58. And the median was 12.98.


Be Aware

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


Related Terms


Headlines

From the Internet

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK