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Mackinac Financial Corp  (NAS:MFNC) E10: $0.70 (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.

Mackinac Financial Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.330. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.70 for the trailing ten years ended in Sep. 2017.

As of today, Mackinac Financial Corp's current stock price is $15.74. Mackinac Financial Corp's E10 for the quarter that ended in Sep. 2017 was $0.70. Mackinac Financial Corp's Shiller PE Ratio of today is 22.49.

During the past 13 years, the highest Shiller PE Ratio of Mackinac Financial Corp was 120.00. The lowest was 6.80. And the median was 13.61.


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.

Mackinac Financial Corp 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 -3.41 0.10 0.53 0.89 0.92

Mackinac Financial Corp 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 0.90 0.92 0.92 0.94 0.70

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, Mackinac Financial Corp'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)
=0.33/246.819*246.819
=0.330

Current CPI (Sep. 2017) = 246.819.

Mackinac Financial Corp Quarterly Data

per share eps CPI Adj_EPS
200712 0.150 210.036 0.176
200803 0.040 213.528 0.046
200806 0.520 218.815 0.587
200809 0.060 218.783 0.068
200812 -0.070 210.228 -0.082
200903 0.030 212.709 0.035
200906 0.130 215.693 0.149
200909 0.450 215.969 0.514
200912 -0.050 215.949 -0.057
201003 1.030 217.631 1.168
201006 -0.730 217.965 -0.827
201009 -0.030 218.439 -0.034
201012 -0.610 219.179 -0.687
201103 0.070 223.467 0.077
201106 0.170 225.722 0.186
201109 0.200 226.889 0.218
201112 -0.040 225.672 -0.044
201203 0.110 229.392 0.118
201206 0.940 229.478 1.011
201209 0.200 231.407 0.213
201212 0.210 229.601 0.226
201303 0.120 232.773 0.127
201306 0.220 233.504 0.233
201309 0.150 234.149 0.158
201312 0.510 233.049 0.540
201403 0.120 236.293 0.125
201406 0.140 238.343 0.145
201409 0.160 238.031 0.166
201412 -0.130 234.812 -0.137
201503 0.220 236.119 0.230
201506 0.260 238.638 0.269
201509 0.160 237.945 0.166
201512 0.250 236.525 0.261
201603 0.180 238.132 0.187
201606 -0.020 241.018 -0.020
201609 0.280 241.428 0.286
201612 0.270 241.432 0.276
201703 0.280 243.801 0.283
201706 0.270 244.955 0.272
201709 0.330 246.819 0.330

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.

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

Shiller PE Ratio=Share Price/E10
=15.74/0.70
=22.49

* 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 Mackinac Financial Corp was 120.00. The lowest was 6.80. And the median was 13.61.


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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