Switch to:
Mercer International Inc  (NAS:MERC) E10: $0.13 (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.

Mercer International Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.320. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.13 for the trailing ten years ended in Sep. 2017.

As of today, Mercer International Inc's current stock price is $14.30. Mercer International Inc's E10 for the quarter that ended in Sep. 2017 was $0.13. Mercer International Inc's Shiller PE Ratio of today is 110.00.

During the past 13 years, the highest Shiller PE Ratio of Mercer International Inc was 118.75. The lowest was 20.30. And the median was 64.17.


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.

Mercer International 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 -0.34 -0.36 -0.32 0.33 0.15

Mercer International 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 0.21 0.15 0.16 0.14 0.13

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, Mercer International 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)
=0.32/246.819*246.819
=0.320

Current CPI (Sep. 2017) = 246.819.

Mercer International Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.291 210.036 0.342
200803 0.126 213.528 0.146
200806 0.031 218.815 0.035
200809 -0.660 218.783 -0.745
200812 -2.264 210.228 -2.658
200903 -1.433 212.709 -1.663
200906 -0.449 215.693 -0.514
200909 -0.571 215.969 -0.653
200912 0.171 215.949 0.195
201003 -0.282 217.631 -0.320
201006 0.280 217.965 0.317
201009 1.118 218.439 1.263
201012 0.807 219.179 0.909
201103 0.734 223.467 0.811
201106 0.376 225.722 0.411
201109 0.204 226.889 0.222
201112 -0.063 225.672 -0.069
201203 0.027 229.392 0.029
201206 0.034 229.478 0.037
201209 -0.219 231.407 -0.234
201212 -0.112 229.601 -0.120
201303 -0.010 232.773 -0.011
201306 -0.230 233.504 -0.243
201309 -0.050 234.149 -0.053
201312 -0.170 233.049 -0.180
201403 0.370 236.293 0.386
201406 0.010 238.343 0.010
201409 1.370 238.031 1.421
201412 0.030 234.812 0.032
201503 0.210 236.119 0.220
201506 0.250 238.638 0.259
201509 0.370 237.945 0.384
201512 0.330 236.525 0.344
201603 0.140 238.132 0.145
201606 -0.070 241.018 -0.072
201609 0.180 241.428 0.184
201612 0.290 241.432 0.296
201703 0.150 243.801 0.152
201706 -0.030 244.955 -0.030
201709 0.320 246.819 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.

Mercer International Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=14.30/0.13
=110.00

* 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 Mercer International Inc was 118.75. The lowest was 20.30. And the median was 64.17.


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