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W.W. Grainger E10

: $11.92 (As of Jun. 2020)
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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.

W.W. Grainger's adjusted earnings per share data for the three months ended in Jun. 2020 was $2.100. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $11.92 for the trailing ten years ended in Jun. 2020.

As of today (2020-09-25), W.W. Grainger's current stock price is $342.48. W.W. Grainger's E10 for the quarter that ended in Jun. 2020 was $11.92. W.W. Grainger's Shiller PE Ratio of today is 28.73.

During the past 13 years, the highest Shiller PE Ratio of W.W. Grainger was 41.93. The lowest was 17.04. And the median was 28.69.


W.W. Grainger 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.

W.W. Grainger Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.43 9.13 9.74 10.57 11.70

W.W. Grainger Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
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 11.40 11.63 11.70 11.79 11.92

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.


W.W. Grainger E10 Distribution

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



W.W. Grainger 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.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, W.W. Grainger's adjusted earnings per share data for the three months ended in Jun. 2020 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2020 (Change)*Current CPI (Jun. 2020)
=2.1/109.3175*109.3175
=2.100

Current CPI (Jun. 2020) = 109.3175.

W.W. Grainger Quarterly Data

per share eps CPI Adj_EPS
201009 2.060 92.277 2.440
201012 1.830 92.914 2.153
201103 2.180 94.890 2.511
201106 2.340 95.319 2.684
201109 2.510 95.529 2.872
201112 2.040 95.632 2.332
201203 2.570 97.075 2.894
201206 2.630 96.661 2.974
201209 2.150 97.595 2.408
201212 2.170 97.158 2.442
201303 2.940 98.107 3.276
201306 3.030 98.557 3.361
201309 2.950 98.536 3.273
201312 2.200 98.692 2.437
201403 3.070 100.023 3.355
201406 2.940 100.520 3.197
201409 3.300 100.176 3.601
201412 2.140 98.604 2.373
201503 3.070 99.824 3.362
201506 3.250 100.691 3.528
201509 2.920 100.346 3.181
201512 2.300 99.957 2.515
201603 2.980 100.947 3.227
201606 2.790 101.524 3.004
201609 3.050 101.988 3.269
201612 1.010 102.456 1.078
201703 2.930 103.167 3.105
201706 1.670 103.278 1.768
201709 2.790 104.070 2.931
201712 2.630 104.578 2.749
201803 4.070 105.708 4.209
201806 4.160 106.324 4.277
201809 1.820 106.695 1.865
201812 3.680 106.200 3.788
201903 4.480 107.818 4.542
201906 4.670 108.250 4.716
201909 4.250 108.577 4.279
201912 1.880 108.841 1.888
202003 3.190 108.173 3.224
202006 2.100 109.318 2.100

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


W.W. Grainger  (NYSE:GWW) 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.

W.W. Grainger's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=342.48/11.92
=28.73

* 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 W.W. Grainger was 41.93. The lowest was 17.04. And the median was 28.69.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


W.W. Grainger E10 Related Terms


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