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Jewett-Cameron Trading Co Ltd  (NAS:JCTCF) E10: $0.73 (As of Aug. 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.

Jewett-Cameron Trading Co Ltd's adjusted earnings per share data for the three months ended in Aug. 2017 was $0.320. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.73 for the trailing ten years ended in Aug. 2017.

As of today, Jewett-Cameron Trading Co Ltd's current stock price is $15.18. Jewett-Cameron Trading Co Ltd's E10 for the quarter that ended in Aug. 2017 was $0.73. Jewett-Cameron Trading Co Ltd's Shiller PE Ratio of today is 20.79.

During the past 13 years, the highest Shiller PE Ratio of Jewett-Cameron Trading Co Ltd was 28.47. The lowest was 7.41. And the median was 16.62.


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.

Jewett-Cameron Trading Co Ltd Annual Data

Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.51 0.57 0.61 0.65 0.73

Jewett-Cameron Trading Co Ltd Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
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 0.65 0.66 0.67 0.71 0.73

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, Jewett-Cameron Trading Co Ltd's adjusted earnings per share data for the three months ended in Aug. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2017 (Change)*Current CPI (Aug. 2017)
=0.32/245.519*245.519
=0.320

Current CPI (Aug. 2017) = 245.519.

Jewett-Cameron Trading Co Ltd Quarterly Data

per share eps CPI Adj_EPS
200711 0.080 210.177 0.093
200802 0.105 211.693 0.122
200805 0.200 216.632 0.227
200808 0.160 219.086 0.179
200811 0.060 212.425 0.069
200902 0.055 212.193 0.064
200905 0.100 213.856 0.115
200908 0.115 215.834 0.131
200911 0.015 216.330 0.017
201002 0.045 216.741 0.051
201005 0.165 218.178 0.186
201008 0.190 218.312 0.214
201011 -0.185 218.803 -0.208
201102 0.125 221.309 0.139
201105 0.150 225.964 0.163
201108 0.160 226.545 0.173
201111 0.015 226.230 0.016
201202 0.355 227.663 0.383
201205 0.290 229.815 0.310
201208 0.240 230.379 0.256
201211 0.150 230.221 0.160
201302 0.250 232.166 0.264
201305 0.320 232.945 0.337
201308 0.270 233.877 0.283
201311 0.110 233.069 0.116
201402 0.080 234.781 0.084
201405 0.330 237.900 0.341
201408 0.130 237.852 0.134
201411 0.120 236.151 0.125
201502 0.110 234.722 0.115
201505 0.180 237.805 0.186
201508 0.280 238.316 0.288
201511 0.210 237.336 0.217
201602 0.050 237.111 0.052
201605 0.370 240.229 0.378
201608 0.230 240.849 0.234
201611 0.210 241.353 0.214
201702 0.140 243.603 0.141
201705 0.530 244.733 0.532
201708 0.320 245.519 0.320

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.

Jewett-Cameron Trading Co Ltd's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=15.18/0.73
=20.79

* 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 Jewett-Cameron Trading Co Ltd was 28.47. The lowest was 7.41. And the median was 16.62.


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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