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Goodyear Tire & Rubber Co  (NAS:GT) E10: $2.16 (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.

Goodyear Tire & Rubber Co's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.580. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.16 for the trailing ten years ended in Jun. 2017.

As of today, Goodyear Tire & Rubber Co's current stock price is $33.94. Goodyear Tire & Rubber Co's E10 for the quarter that ended in Jun. 2017 was $2.16. Goodyear Tire & Rubber Co's Shiller PE Ratio of today is 15.71.

During the past 13 years, the highest Shiller PE Ratio of Goodyear Tire & Rubber Co was 74.64. The lowest was 13.77. And the median was 23.37.


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.

Goodyear Tire & Rubber Co 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 0.00 0.36 1.18 1.17 1.91

Goodyear Tire & Rubber Co 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 1.29 1.44 1.91 2.11 2.16

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, Goodyear Tire & Rubber Co'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)
=0.58/244.955*244.955
=0.580

Current CPI (Jun. 2017) = 244.955.

Goodyear Tire & Rubber Co Quarterly Data

per share eps CPI Adj_EPS
200709 2.750 208.490 3.231
200712 0.190 210.036 0.222
200803 0.600 213.528 0.688
200806 0.310 218.815 0.347
200809 0.130 218.783 0.146
200812 -1.370 210.228 -1.596
200903 -1.380 212.709 -1.589
200906 -0.920 215.693 -1.045
200909 0.300 215.969 0.340
200912 0.450 215.949 0.510
201003 -0.190 217.631 -0.214
201006 0.110 217.965 0.124
201009 -0.080 218.439 -0.090
201012 -0.730 219.179 -0.816
201103 0.420 223.467 0.460
201106 0.160 225.722 0.174
201109 0.600 226.889 0.648
201112 0.070 225.672 0.076
201203 -0.050 229.392 -0.053
201206 0.330 229.478 0.352
201209 0.410 231.407 0.434
201212 0.000 229.601 0.000
201303 0.100 232.773 0.105
201306 0.670 233.504 0.703
201309 0.620 234.149 0.649
201312 0.850 233.049 0.893
201403 -0.230 236.293 -0.238
201406 0.760 238.343 0.781
201409 0.580 238.031 0.597
201412 7.630 234.812 7.960
201503 0.820 236.119 0.851
201506 0.700 238.638 0.719
201509 0.990 237.945 1.019
201512 -1.410 236.525 -1.460
201603 0.680 238.132 0.699
201606 0.750 241.018 0.762
201609 1.190 241.428 1.207
201612 2.120 241.432 2.151
201703 0.650 243.801 0.653
201706 0.580 244.955 0.580

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.

Goodyear Tire & Rubber Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=33.94/2.16
=15.71

* 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 Goodyear Tire & Rubber Co was 74.64. The lowest was 13.77. And the median was 23.37.


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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