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Newell Brands Inc  (NYSE:NWL) E10: $1.24 (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.

Newell Brands Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.460. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.24 for the trailing ten years ended in Jun. 2017.

As of today, Newell Brands Inc's current stock price is $40.37. Newell Brands Inc's E10 for the quarter that ended in Jun. 2017 was $1.24. Newell Brands Inc's Shiller PE Ratio of today is 32.56.

During the past 13 years, the highest Shiller PE Ratio of Newell Brands Inc was 48.15. The lowest was 7.36. And the median was 32.40.


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.

Newell Brands 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 0.73 0.92 1.12 1.15 1.12

Newell Brands 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 1.14 1.13 1.12 1.24 1.24

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, Newell Brands 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)
=0.46/244.955*244.955
=0.460

Current CPI (Jun. 2017) = 244.955.

Newell Brands Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.610 208.490 0.717
200712 0.380 210.036 0.443
200803 0.200 213.528 0.229
200806 0.330 218.815 0.369
200809 0.200 218.783 0.224
200812 -0.920 210.228 -1.072
200903 0.120 212.709 0.138
200906 0.370 215.693 0.420
200909 0.280 215.969 0.318
200912 0.190 215.949 0.216
201003 0.190 217.631 0.214
201006 0.410 217.965 0.461
201009 0.090 218.439 0.101
201012 0.260 219.179 0.291
201103 0.250 223.467 0.274
201106 0.490 225.722 0.532
201109 -0.610 226.889 -0.659
201112 0.270 225.672 0.293
201203 0.270 229.392 0.288
201206 0.380 229.478 0.406
201209 0.370 231.407 0.392
201212 0.350 229.601 0.373
201303 0.190 232.773 0.200
201306 0.370 233.504 0.388
201309 0.660 234.149 0.690
201312 0.410 233.049 0.431
201403 0.190 236.293 0.197
201406 0.540 238.343 0.555
201409 0.440 238.031 0.453
201412 0.190 234.812 0.198
201503 0.200 236.119 0.207
201506 0.550 238.638 0.565
201509 0.500 237.945 0.515
201512 0.050 236.525 0.052
201603 0.150 238.132 0.154
201606 0.300 241.018 0.305
201609 0.380 241.428 0.386
201612 0.340 241.432 0.345
201703 1.310 243.801 1.316
201706 0.460 244.955 0.460

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.

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

Shiller PE Ratio=Share Price/E10
=40.37/1.24
=32.56

* 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 Newell Brands Inc was 48.15. The lowest was 7.36. And the median was 32.40.


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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