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HMN Financial Inc  (NAS:HMNF) E10: $-0.82 (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.

HMN Financial Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.370. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.82 for the trailing ten years ended in Sep. 2017.

As of today, HMN Financial Inc's current stock price is $18.30. HMN Financial Inc's E10 for the quarter that ended in Sep. 2017 was $-0.82. HMN Financial Inc's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of HMN Financial Inc was 30.33. The lowest was 0.00. And the median was 7.33.


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.

HMN Financial 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 -0.35 -0.06 -0.23 -0.50 -0.63

HMN Financial 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 -0.58 -0.63 -0.70 -0.76 -0.82

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, HMN Financial 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)
=0.37/246.819*246.819
=0.370

Current CPI (Sep. 2017) = 246.819.

HMN Financial Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.730 210.036 0.858
200803 0.390 213.528 0.451
200806 -0.560 218.815 -0.632
200809 -1.930 218.783 -2.177
200812 -0.700 210.228 -0.822
200903 -0.830 212.709 -0.963
200906 -2.620 215.693 -2.998
200909 0.120 215.969 0.137
200912 -0.070 215.949 -0.080
201003 -0.610 217.631 -0.692
201006 -2.200 217.965 -2.491
201009 -2.600 218.439 -2.938
201012 -2.740 219.179 -3.086
201103 -0.010 223.467 -0.011
201106 -0.720 225.722 -0.787
201109 -0.650 226.889 -0.707
201112 -2.090 225.672 -2.286
201203 0.580 229.392 0.624
201206 -0.020 229.478 -0.022
201209 0.040 231.407 0.043
201212 0.250 229.601 0.269
201303 0.060 232.773 0.064
201306 0.300 233.504 0.317
201309 1.270 234.149 1.339
201312 4.060 233.049 4.300
201403 0.240 236.293 0.251
201406 0.440 238.343 0.456
201409 0.250 238.031 0.259
201412 0.300 234.812 0.315
201503 0.080 236.119 0.084
201506 0.130 238.638 0.134
201509 0.180 237.945 0.187
201512 0.230 236.525 0.240
201603 0.380 238.132 0.394
201606 0.310 241.018 0.317
201609 0.300 241.428 0.307
201612 0.350 241.432 0.358
201703 0.250 243.801 0.253
201706 0.210 244.955 0.212
201709 0.370 246.819 0.370

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.

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

Shiller PE Ratio=Share Price/E10
=18.30/-0.82
=

* 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 HMN Financial Inc was 30.33. The lowest was 0.00. And the median was 7.33.


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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