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Meredith Corp  (NYSE:MDP) E10: $2.23 (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.

Meredith Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.960. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.23 for the trailing ten years ended in Jun. 2017.

As of today, Meredith Corp's current stock price is $53.20. Meredith Corp's E10 for the quarter that ended in Jun. 2017 was $2.23. Meredith Corp's Shiller PE Ratio of today is 23.86.

During the past 13 years, the highest Shiller PE Ratio of Meredith Corp was 32.76. The lowest was 5.37. And the median was 18.82.


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.

Meredith Corp Annual Data

Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.38 2.42 2.41 2.17 2.23

Meredith 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 2.17 2.17 2.24 2.24 2.23

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, Meredith 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)
=0.96/244.955*244.955
=0.960

Current CPI (Jun. 2017) = 244.955.

Meredith Corp Quarterly Data

per share eps CPI Adj_EPS
200709 0.680 208.490 0.799
200712 0.750 210.036 0.875
200803 0.970 213.528 1.113
200806 0.430 218.815 0.481
200809 0.410 218.783 0.459
200812 0.280 210.228 0.326
200903 0.560 212.709 0.645
200906 -3.630 215.693 -4.122
200909 0.400 215.969 0.454
200912 0.420 215.949 0.476
201003 0.730 217.631 0.822
201006 0.730 217.965 0.820
201009 0.560 218.439 0.628
201012 0.880 219.179 0.983
201103 0.670 223.467 0.734
201106 0.660 225.722 0.716
201109 0.480 226.889 0.518
201112 0.700 225.672 0.760
201203 0.470 229.392 0.502
201206 0.660 229.478 0.705
201209 0.550 231.407 0.582
201212 0.790 229.601 0.843
201303 0.650 232.773 0.684
201306 0.740 233.504 0.776
201309 0.530 234.149 0.554
201312 0.670 233.049 0.704
201403 0.410 236.293 0.425
201406 0.890 238.343 0.915
201409 0.650 238.031 0.669
201412 0.870 234.812 0.908
201503 0.560 236.119 0.581
201506 0.940 238.638 0.965
201509 0.240 237.945 0.247
201512 0.720 236.525 0.746
201603 1.790 238.132 1.841
201606 -2.030 241.018 -2.063
201609 0.750 241.428 0.761
201612 1.580 241.432 1.603
201703 0.870 243.801 0.874
201706 0.960 244.955 0.960

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.

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

Shiller PE Ratio=Share Price/E10
=53.20/2.23
=23.86

* 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 Meredith Corp was 32.76. The lowest was 5.37. And the median was 18.82.


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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