USD 1.21 as of today(2019-09-21). Graco E10 explanation, calculation, historical data and more" />Graco E10 | GGG - GuruFocus.com
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Graco E10

: USD 1.21 (As of Jun. 2019)
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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.

Graco's adjusted earnings per share data for the three months ended in Jun. 2019 was USD 0.510. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is USD 1.21 for the trailing ten years ended in Jun. 2019.

As of today (2019-09-21), Graco's current stock price is USD 45.74. Graco's E10 for the quarter that ended in Jun. 2019 was USD 1.21. Graco's Shiller PE Ratio of today is 37.80.

During the past 13 years, the highest Shiller PE Ratio of Graco was 51.11. The lowest was 8.94. And the median was 27.95.


Graco E10 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.

Graco Annual Data
Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.80 0.93 0.88 0.96 1.09

Graco Quarterly Data
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
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 1.03 1.07 1.09 1.15 1.21

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.


Graco E10 Distribution

* The bar in red indicates where Graco's E10 falls into.



Graco E10 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, Graco's adjusted earnings per share data for the three months ended in Jun. 2019 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2019 (Change)*Current CPI (Jun. 2019)
=0.51/256.143*256.143
=0.510

Current CPI (Jun. 2019) = 256.143.

Graco Quarterly Data

per share eps CPI Adj_EPS
200909 0.097 215.969 0.115
200912 0.093 215.949 0.111
201003 0.113 217.631 0.133
201006 0.137 217.965 0.161
201009 0.167 218.439 0.195
201012 0.147 219.179 0.171
201103 0.203 223.467 0.233
201106 0.203 225.722 0.231
201109 0.200 226.889 0.226
201112 0.167 225.672 0.189
201203 0.193 229.392 0.216
201206 0.187 229.478 0.208
201209 0.200 231.407 0.221
201212 0.227 229.601 0.253
201303 0.280 232.773 0.308
201306 0.307 233.504 0.336
201309 0.297 234.149 0.325
201312 0.237 233.049 0.260
201403 0.270 236.293 0.293
201406 0.357 238.343 0.383
201409 0.323 238.031 0.348
201412 0.267 234.812 0.291
201503 0.380 236.119 0.412
201506 0.967 238.638 1.038
201509 0.287 237.945 0.309
201512 0.313 236.525 0.339
201603 0.233 238.132 0.251
201606 0.297 241.018 0.315
201609 0.317 241.428 0.336
201612 -0.623 241.432 -0.661
201703 0.350 243.801 0.368
201706 0.460 244.955 0.481
201709 0.430 246.819 0.446
201712 0.210 246.524 0.218
201803 0.490 249.554 0.503
201806 0.510 251.989 0.518
201809 0.540 252.439 0.548
201812 0.430 251.233 0.438
201903 0.510 254.202 0.514
201906 0.510 256.143 0.510

Add all the adjusted EPS together and divide 10 will get our e10.


Graco  (NYSE:GGG) 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.

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

Shiller PE Ratio=Share Price/E10
=45.74/1.21
=37.80

* 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 Graco was 51.11. The lowest was 8.94. And the median was 27.95.


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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