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Group 1 Automotive Inc  (NYSE:GPI) E10: $3.44 (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.

Group 1 Automotive Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.430. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.44 for the trailing ten years ended in Sep. 2017.

As of today, Group 1 Automotive Inc's current stock price is $77.01. Group 1 Automotive Inc's E10 for the quarter that ended in Sep. 2017 was $3.44. Group 1 Automotive Inc's Shiller PE Ratio of today is 22.39.

During the past 13 years, the highest Shiller PE Ratio of Group 1 Automotive Inc was 33.60. The lowest was 2.22. And the median was 19.25.


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.

Group 1 Automotive 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 2.46 2.52 2.73 2.88 3.17

Group 1 Automotive 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 3.10 3.17 3.28 3.37 3.44

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, Group 1 Automotive 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)
=1.43/246.819*246.819
=1.430

Current CPI (Sep. 2017) = 246.819.

Group 1 Automotive Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.270 210.036 0.317
200803 0.730 213.528 0.844
200806 0.760 218.815 0.857
200809 -0.910 218.783 -1.027
200812 -2.710 210.228 -3.182
200903 0.370 212.709 0.429
200906 0.430 215.693 0.492
200909 0.780 215.969 0.891
200912 -0.090 215.949 -0.103
201003 0.340 217.631 0.386
201006 0.540 217.965 0.611
201009 0.790 218.439 0.893
201012 0.460 219.179 0.518
201103 0.640 223.467 0.707
201106 1.030 225.722 1.126
201109 0.910 226.889 0.990
201112 0.900 225.672 0.984
201203 0.970 229.392 1.044
201206 1.200 229.478 1.291
201209 1.320 231.407 1.408
201212 0.690 229.601 0.742
201303 0.880 232.773 0.933
201306 1.430 233.504 1.512
201309 1.190 234.149 1.254
201312 0.800 233.049 0.847
201403 1.190 236.293 1.243
201406 0.620 238.343 0.642
201409 1.030 238.031 1.068
201412 0.760 234.812 0.799
201503 1.470 236.119 1.537
201506 1.910 238.638 1.975
201509 1.880 237.945 1.950
201512 -1.360 236.525 -1.419
201603 1.470 238.132 1.524
201606 2.120 241.018 2.171
201609 1.650 241.428 1.687
201612 1.440 241.432 1.472
201703 1.580 243.801 1.600
201706 1.840 244.955 1.854
201709 1.430 246.819 1.430

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.

Group 1 Automotive Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=77.01/3.44
=22.39

* 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 Group 1 Automotive Inc was 33.60. The lowest was 2.22. And the median was 19.25.


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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