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Hormel Foods Corp  (NYSE:HRL) E10: $1.07 (As of Jul. 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.

Hormel Foods Corp's adjusted earnings per share data for the three months ended in Jul. 2017 was $0.340. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.07 for the trailing ten years ended in Jul. 2017.

As of today, Hormel Foods Corp's current stock price is $30.62. Hormel Foods Corp's E10 for the quarter that ended in Jul. 2017 was $1.07. Hormel Foods Corp's Shiller PE Ratio of today is 28.62.

During the past 13 years, the highest Shiller PE Ratio of Hormel Foods Corp was 50.01. The lowest was 14.43. And the median was 24.82.


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.

Hormel Foods Corp Annual Data

Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.66 0.72 0.78 0.86 0.98

Hormel Foods Corp Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 0.95 0.98 1.01 1.05 1.07

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, Hormel Foods Corp's adjusted earnings per share data for the three months ended in Jul. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jul. 2017 (Change)*Current CPI (Jul. 2017)
=0.34/244.786*244.786
=0.340

Current CPI (Jul. 2017) = 244.786.

Hormel Foods Corp Quarterly Data

per share eps CPI Adj_EPS
200710 0.183 208.936 0.214
200801 0.160 211.080 0.186
200804 0.140 214.823 0.160
200807 0.095 219.964 0.106
200810 0.125 216.573 0.141
200901 0.150 211.143 0.174
200904 0.148 213.240 0.170
200907 0.143 215.351 0.163
200910 0.193 216.177 0.219
201001 0.205 216.687 0.232
201004 0.145 218.009 0.163
201007 0.160 218.011 0.180
201010 0.225 218.711 0.252
201101 0.275 220.223 0.306
201104 0.200 224.906 0.218
201107 0.180 225.922 0.195
201110 0.215 226.421 0.232
201201 0.240 226.665 0.259
201204 0.240 230.085 0.255
201207 0.205 229.104 0.219
201210 0.245 231.317 0.259
201301 0.240 230.280 0.255
201304 0.230 232.531 0.242
201307 0.210 233.596 0.220
201310 0.290 233.546 0.304
201401 0.285 233.916 0.298
201404 0.260 237.072 0.268
201407 0.255 238.250 0.262
201410 0.320 237.433 0.330
201501 0.320 233.707 0.335
201504 0.330 236.599 0.341
201507 0.270 238.654 0.277
201510 0.350 237.838 0.360
201601 0.430 236.916 0.444
201604 0.400 239.261 0.409
201607 0.360 240.628 0.366
201610 0.450 241.729 0.456
201701 0.440 242.839 0.444
201704 0.390 244.524 0.390
201707 0.340 244.786 0.340

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.

Hormel Foods Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=30.62/1.07
=28.62

* 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 Hormel Foods Corp was 50.01. The lowest was 14.43. And the median was 24.82.


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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