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Huntsman Corp  (NYSE:HUN) E10: $1.00 (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.

Huntsman Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.690. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.00 for the trailing ten years ended in Jun. 2017.

As of today, Huntsman Corp's current stock price is $28.98. Huntsman Corp's E10 for the quarter that ended in Jun. 2017 was $1.00. Huntsman Corp's Shiller PE Ratio of today is 28.98.

During the past 13 years, the highest Shiller PE Ratio of Huntsman Corp was 122.16. The lowest was 10.24. And the median was 26.97.


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.

Huntsman Corp 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 0.43 0.74 0.83 0.87

Huntsman Corp 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 0.74 0.86 0.87 0.89 1.00

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, Huntsman Corp'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)
=0.69/244.955*244.955
=0.690

Current CPI (Jun. 2017) = 244.955.

Huntsman Corp Quarterly Data

per share eps CPI Adj_EPS
200709 -0.680 208.490 -0.799
200712 0.010 210.036 0.012
200803 0.030 213.528 0.034
200806 0.100 218.815 0.112
200809 -0.090 218.783 -0.101
200812 2.550 210.228 2.971
200903 -1.240 212.709 -1.428
200906 1.510 215.693 1.715
200909 -0.290 215.969 -0.329
200912 0.280 215.949 0.318
201003 -0.730 217.631 -0.822
201006 0.470 217.965 0.528
201009 0.230 218.439 0.258
201012 0.120 219.179 0.134
201103 0.260 223.467 0.285
201106 0.470 225.722 0.510
201109 -0.140 226.889 -0.151
201112 0.430 225.672 0.467
201203 0.680 229.392 0.726
201206 0.520 229.478 0.555
201209 0.480 231.407 0.508
201212 -0.170 229.601 -0.181
201303 -0.100 232.773 -0.105
201306 0.190 233.504 0.199
201309 0.260 234.149 0.272
201312 0.170 233.049 0.179
201403 0.220 236.293 0.228
201406 0.480 238.343 0.493
201409 0.760 238.031 0.782
201412 -0.157 234.812 -0.164
201503 0.020 236.119 0.021
201506 0.120 238.638 0.123
201509 0.220 237.945 0.226
201512 0.019 236.525 0.020
201603 0.240 238.132 0.247
201606 0.360 241.018 0.366
201609 0.230 241.428 0.233
201612 0.531 241.432 0.539
201703 0.310 243.801 0.311
201706 0.690 244.955 0.690

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.

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

Shiller PE Ratio=Share Price/E10
=28.98/1.00
=28.98

* 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 Huntsman Corp was 122.16. The lowest was 10.24. And the median was 26.97.


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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