Switch to:
Jarden Corp  (NYSE:JAH) E10: $0.76 (As of Dec. 2015)

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.

Jarden Corp's adjusted earnings per share data for the three months ended in Dec. 2015 was $-0.019. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.76 for the trailing ten years ended in Dec. 2015.

As of today, Jarden Corp's current stock price is $58.97. Jarden Corp's E10 for the quarter that ended in Dec. 2015 was $0.76. Jarden Corp's Shiller PE Ratio of today is 77.59.


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.

Jarden Corp Annual Data

Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.45 0.54 0.61 0.69 0.76

Jarden Corp Quarterly Data

Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 0.69 0.69 0.74 0.76 0.76

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, Jarden Corp's adjusted earnings per share data for the three months ended in Dec. 2015 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2015 (Change)*Current CPI (Dec. 2015)
=-0.019/236.525*236.525
=-0.019

Current CPI (Dec. 2015) = 236.525.

Jarden Corp Quarterly Data

per share eps CPI Adj_EPS
200603 0.040 199.800 0.047
200606 0.089 202.900 0.104
200609 0.347 202.900 0.405
200612 0.232 201.800 0.272
200703 0.009 205.352 0.010
200706 0.102 208.352 0.116
200709 0.124 208.490 0.141
200712 -0.066 210.036 -0.074
200803 0.027 213.528 0.030
200806 0.249 218.815 0.269
200809 0.369 218.783 0.399
200812 -1.011 210.228 -1.137
200903 0.053 212.709 0.059
200906 0.236 215.693 0.259
200909 0.369 215.969 0.404
200912 0.006 215.949 0.007
201003 -0.293 217.631 -0.318
201006 0.191 217.965 0.207
201009 0.400 218.439 0.433
201012 0.232 219.179 0.250
201103 0.093 223.467 0.098
201106 0.369 225.722 0.387
201109 0.458 226.889 0.477
201112 0.107 225.672 0.112
201203 0.180 229.392 0.186
201206 0.480 229.478 0.495
201209 0.440 231.407 0.450
201212 0.286 229.601 0.295
201303 -0.027 232.773 -0.027
201306 0.473 233.504 0.479
201309 0.567 234.149 0.573
201312 0.193 233.049 0.196
201403 0.020 236.293 0.020
201406 0.280 238.343 0.278
201409 0.580 238.031 0.576
201412 0.410 234.812 0.413
201503 -0.300 236.119 -0.301
201506 0.440 238.638 0.436
201509 0.570 237.945 0.567
201512 -0.019 236.525 -0.019

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.

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

Shiller PE Ratio=Share Price/E10
=58.97/0.76
=77.59

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Related Terms


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK