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Two Harbors Investment E10

: $1.30 (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.

Two Harbors Investment's adjusted earnings per share data for the three months ended in Jun. 2020 was $-0.700. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.30 for the trailing ten years ended in Jun. 2020.

As of today (2020-10-25), Two Harbors Investment's current stock price is $5.41. Two Harbors Investment's E10 for the quarter that ended in Jun. 2020 was $1.30. Two Harbors Investment's Shiller PE Ratio of today is 4.16.

During the past 13 years, the highest Shiller PE Ratio of Two Harbors Investment was 8.98. The lowest was 1.11. And the median was 6.91.


Two Harbors Investment 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.

Two Harbors Investment 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 0.00 0.00 2.00 1.97 2.19

Two Harbors Investment 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 1.96 2.08 2.19 1.40 1.30

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.


Two Harbors Investment E10 Distribution

* The bar in red indicates where Two Harbors Investment's E10 falls into.



Two Harbors Investment 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, Two Harbors Investment'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)
=-0.7/109.3175*109.3175
=-0.700

Current CPI (Jun. 2020) = 109.3175.

Two Harbors Investment Quarterly Data

per share eps CPI Adj_EPS
201009 0.760 92.277 0.900
201012 1.340 92.914 1.577
201103 0.980 94.890 1.129
201106 -0.020 95.319 -0.023
201109 0.840 95.529 0.961
201112 0.780 95.632 0.892
201203 0.560 97.075 0.631
201206 0.220 96.661 0.249
201209 0.200 97.595 0.224
201212 1.280 97.158 1.440
201303 0.940 98.107 1.047
201306 2.120 98.557 2.351
201309 -1.060 98.536 -1.176
201312 1.320 98.692 1.462
201403 -0.160 100.023 -0.175
201406 0.220 100.520 0.239
201409 1.060 100.176 1.157
201412 -0.200 98.604 -0.222
201503 0.520 99.824 0.569
201506 1.200 100.691 1.303
201509 -0.180 100.346 -0.196
201512 1.180 99.957 1.290
201603 -0.500 100.947 -0.541
201606 -0.100 101.524 -0.108
201609 0.680 101.988 0.729
201612 1.960 102.456 2.091
201703 0.410 103.167 0.434
201706 0.020 103.278 0.021
201709 0.520 104.070 0.546
201712 0.840 104.578 0.878
201803 1.690 105.708 1.748
201806 0.680 106.324 0.699
201809 0.080 106.695 0.082
201812 -2.310 106.200 -2.378
201903 -0.180 107.818 -0.183
201906 -0.400 108.250 -0.404
201909 1.000 108.577 1.007
201912 0.410 108.841 0.412
202003 -6.910 108.173 -6.983
202006 -0.700 109.318 -0.700

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


Two Harbors Investment  (NYSE:TWO) 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.

Two Harbors Investment's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=5.41/1.3
=4.16

* 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 Two Harbors Investment was 8.98. The lowest was 1.11. And the median was 6.91.


Be Aware

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


Two Harbors Investment E10 Related Terms


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