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John Wiley & Sons Inc  (NYSE:JW.A) E10: $2.75 (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.

John Wiley & Sons Inc's adjusted earnings per share data for the three months ended in Jul. 2017 was $0.160. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.75 for the trailing ten years ended in Jul. 2017.

As of today, John Wiley & Sons Inc's current stock price is $56.48. John Wiley & Sons Inc's E10 for the quarter that ended in Jul. 2017 was $2.75. John Wiley & Sons Inc's Shiller PE Ratio of today is 20.54.

During the past 13 years, the highest Shiller PE Ratio of John Wiley & Sons Inc was 37.43. The lowest was 15.16. And the median was 21.14.


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.

John Wiley & Sons Inc Annual Data

Apr08 Apr09 Apr10 Apr11 Apr12 Apr13 Apr14 Apr15 Apr16 Apr17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.40 2.54 2.67 2.72 2.79

John Wiley & Sons Inc 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 2.75 2.67 2.71 2.79 2.75

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, John Wiley & Sons Inc'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)
=0.16/244.786*244.786
=0.160

Current CPI (Jul. 2017) = 244.786.

John Wiley & Sons Inc Quarterly Data

per share eps CPI Adj_EPS
200710 0.650 208.936 0.762
200801 0.670 211.080 0.777
200804 0.490 214.823 0.558
200807 0.500 219.964 0.556
200810 0.670 216.573 0.757
200901 0.570 211.143 0.661
200904 0.410 213.240 0.471
200907 0.450 215.351 0.512
200910 0.780 216.177 0.883
201001 0.710 216.687 0.802
201004 0.460 218.009 0.516
201007 0.720 218.011 0.808
201010 0.880 218.711 0.985
201101 0.740 220.223 0.823
201104 0.460 224.906 0.501
201107 0.820 225.922 0.888
201110 0.830 226.421 0.897
201201 1.030 226.665 1.112
201204 0.780 230.085 0.830
201207 0.600 229.104 0.641
201210 0.710 231.317 0.751
201301 0.950 230.280 1.010
201304 0.130 232.531 0.137
201307 0.610 233.596 0.639
201310 0.610 233.546 0.639
201401 0.880 233.916 0.921
201404 0.600 237.072 0.620
201407 0.560 238.250 0.575
201410 0.900 237.433 0.928
201501 0.720 233.707 0.754
201504 0.790 236.599 0.817
201507 0.550 238.654 0.564
201510 0.740 237.838 0.762
201601 0.610 236.916 0.630
201604 0.580 239.261 0.593
201607 0.530 240.628 0.539
201610 -0.200 241.729 -0.203
201701 0.820 242.839 0.827
201704 0.800 244.524 0.801
201707 0.160 244.786 0.160

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.

John Wiley & Sons Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=56.48/2.75
=20.54

* 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 John Wiley & Sons Inc was 37.43. The lowest was 15.16. And the median was 21.14.


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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