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Monro Inc  (NAS:MNRO) E10: $1.57 (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.

Monro Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.530. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.57 for the trailing ten years ended in Jun. 2017.

As of today, Monro Inc's current stock price is $51.20. Monro Inc's E10 for the quarter that ended in Jun. 2017 was $1.57. Monro Inc's Shiller PE Ratio of today is 32.61.

During the past 13 years, the highest Shiller PE Ratio of Monro Inc was 56.47. The lowest was 18.61. And the median was 38.59.


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.

Monro Inc Annual Data

Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.03 1.15 1.26 1.39 1.53

Monro Inc 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 1.43 1.46 1.50 1.53 1.57

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, Monro Inc'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)
=0.53/244.955*244.955
=0.530

Current CPI (Jun. 2017) = 244.955.

Monro Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.193 208.490 0.227
200712 0.167 210.036 0.195
200803 0.073 213.528 0.084
200806 0.260 218.815 0.291
200809 0.253 218.783 0.283
200812 0.187 210.228 0.218
200903 0.100 212.709 0.115
200906 0.307 215.693 0.349
200909 0.327 215.969 0.371
200912 0.250 215.949 0.284
201003 0.180 217.631 0.203
201006 0.420 217.965 0.472
201009 0.420 218.439 0.471
201012 0.350 219.179 0.391
201103 0.260 223.467 0.285
201106 0.480 225.722 0.521
201109 0.470 226.889 0.507
201112 0.420 225.672 0.456
201203 0.320 229.392 0.342
201206 0.360 229.478 0.384
201209 0.360 231.407 0.381
201212 0.350 229.601 0.373
201303 0.250 232.773 0.263
201306 0.420 233.504 0.441
201309 0.420 234.149 0.439
201312 0.470 233.049 0.494
201403 0.360 236.293 0.373
201406 0.520 238.343 0.534
201409 0.500 238.031 0.515
201412 0.490 234.812 0.511
201503 0.380 236.119 0.394
201506 0.570 238.638 0.585
201509 0.570 237.945 0.587
201512 0.460 236.525 0.476
201603 0.410 238.132 0.422
201606 0.500 241.018 0.508
201609 0.530 241.428 0.538
201612 0.530 241.432 0.538
201703 0.290 243.801 0.291
201706 0.530 244.955 0.530

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.

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

Shiller PE Ratio=Share Price/E10
=51.20/1.57
=32.61

* 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 Monro Inc was 56.47. The lowest was 18.61. And the median was 38.59.


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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