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Kennedy-Wilson Holdings Inc  (NYSE:KW) E10: $-0.02 (As of Sep. 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.

Kennedy-Wilson Holdings Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $-0.080. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.02 for the trailing ten years ended in Sep. 2017.

As of today, Kennedy-Wilson Holdings Inc's current stock price is $18.95. Kennedy-Wilson Holdings Inc's E10 for the quarter that ended in Sep. 2017 was $-0.02. Kennedy-Wilson Holdings Inc's Shiller PE Ratio of today is .


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.

Kennedy-Wilson Holdings Inc 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 0.00 0.00 0.00 0.00

Kennedy-Wilson Holdings Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 0.00 0.00 0.00 -0.01 -0.02

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, Kennedy-Wilson Holdings Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=-0.08/246.819*246.819
=-0.080

Current CPI (Sep. 2017) = 246.819.

Kennedy-Wilson Holdings Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.050 210.036 0.059
200803 0.030 213.528 0.035
200806 0.010 218.815 0.011
200809 0.010 218.783 0.011
200812 -0.020 210.228 -0.023
200903 -0.060 212.709 -0.070
200906 -0.120 215.693 -0.137
200909 0.000 215.969 0.000
200912 -0.390 215.949 -0.446
201003 -0.080 217.631 -0.091
201006 0.200 217.965 0.226
201009 -0.170 218.439 -0.192
201012 0.000 219.179 0.000
201103 -0.020 223.467 -0.022
201106 -0.060 225.722 -0.066
201109 -0.160 226.889 -0.174
201112 0.200 225.672 0.219
201203 -0.070 229.392 -0.075
201206 -0.060 229.478 -0.065
201209 -0.110 231.407 -0.117
201212 0.170 229.601 0.183
201303 -0.060 232.773 -0.064
201306 -0.030 233.504 -0.032
201309 -0.060 234.149 -0.063
201312 -0.060 233.049 -0.064
201403 0.120 236.293 0.125
201406 0.380 238.343 0.394
201409 -0.030 238.031 -0.031
201412 -0.330 234.812 -0.347
201503 -0.050 236.119 -0.052
201506 0.270 238.638 0.279
201509 0.130 237.945 0.135
201512 0.260 236.525 0.271
201603 -0.070 238.132 -0.073
201606 -0.020 241.018 -0.020
201609 -0.030 241.428 -0.031
201612 0.130 241.432 0.133
201703 0.007 243.801 0.007
201706 0.080 244.955 0.081
201709 -0.080 246.819 -0.080

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.

Kennedy-Wilson Holdings Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=18.95/-0.02
=

* 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.


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