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Westlake E10

: $7.31 (As of Mar. 2022)
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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.

Westlake's adjusted earnings per share data for the three months ended in Mar. 2022 was $5.830. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $7.31 for the trailing ten years ended in Mar. 2022.

As of today (2022-07-03), Westlake's current stock price is $98.86. Westlake's E10 for the quarter that ended in Mar. 2022 was $7.31. Westlake's Shiller PE Ratio of today is 13.52.

During the past 13 years, the highest Shiller PE Ratio of Westlake was 49.06. The lowest was 6.88. And the median was 21.71.


Westlake E10 Historical Data

The historical data trend for Westlake's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Westlake Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.55 4.41 4.79 4.91 6.61

Westlake Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 5.11 5.57 6.03 6.61 7.31

Competitive Comparison

For the Specialty Chemicals subindustry, Westlake's E10, along with its competitors' market caps and E10 data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.

   

Westlake E10 Distribution

For the Chemicals industry and Basic Materials sector, Westlake's E10 distribution charts can be found below:

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



Westlake 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, Westlake's adjusted earnings per share data for the three months ended in Mar. 2022 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2022 (Change)*Current CPI (Mar. 2022)
=5.83/121.3010*121.3010
=5.830

Current CPI (Mar. 2022) = 121.3010.

Westlake Quarterly Data

per share eps CPI Adj_EPS
201206 0.860 96.819 1.077
201209 0.650 97.633 0.808
201212 0.710 96.871 0.889
201303 0.920 98.209 1.136
201306 1.090 98.518 1.342
201309 1.270 98.790 1.559
201312 1.270 98.326 1.567
201403 1.180 99.695 1.436
201406 1.260 100.560 1.520
201409 1.250 100.428 1.510
201412 1.370 99.070 1.677
201503 1.100 99.621 1.339
201506 1.540 100.684 1.855
201509 1.390 100.392 1.680
201512 0.840 99.792 1.021
201603 0.940 100.470 1.135
201606 0.850 101.688 1.014
201609 0.510 101.861 0.607
201612 0.760 101.863 0.905
201703 1.060 102.862 1.250
201706 1.170 103.349 1.373
201709 1.610 104.136 1.875
201712 6.150 104.011 7.172
201803 2.200 105.290 2.535
201806 2.120 106.317 2.419
201809 2.350 106.507 2.676
201812 0.950 105.998 1.087
201903 0.550 107.251 0.622
201906 0.920 108.070 1.033
201909 1.220 108.329 1.366
201912 0.560 108.420 0.627
202003 1.130 108.902 1.259
202006 0.110 108.767 0.123
202009 0.450 109.815 0.497
202012 0.870 109.897 0.960
202103 1.870 111.754 2.030
202106 4.040 114.631 4.275
202109 4.690 115.734 4.916
202112 4.980 117.630 5.135
202203 5.830 121.301 5.830

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


Westlake  (NYSE:WLK) 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.

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

Shiller PE Ratio=Share Price/E10
=98.86/7.31
=13.52

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Shiller P/E Ratio of Westlake was 49.06. The lowest was 6.88. And the median was 21.71.


Be Aware

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


Westlake E10 Related Terms

Thank you for viewing the detailed overview of Westlake's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Westlake Business Description

Westlake logo
Industry
Basic Materials » Chemicals NAICS : 325110 SIC : 2869
Traded in Other Exchanges
Address
2801 Post Oak Boulevard, Suite 600, Houston, TX, USA, 77056
Westlake Corp is a manufacturer and global supplier of chemicals, polymers and building products. Its Performance & Essential Materials segment offers a wide range of essential building blocks for making products utilized in everyday living, including olefins, vinyl chemicals, polyethylene, and epoxies. Its Housing & Infrastructure Products segment produces key finished goods for building products, pipe & fittings, and global compounds businesses.
Executives
Sheets Jeffrey Wayne director 600 N. DAIRY ASHFORD HOUSTON TX 77079
Chao John Tsung-chen director, 10 percent owner 26 GRAMERCY PARK SOUTH, 7EF NEW YORK NY 10003
Chao David Tsung-hung director, 10 percent owner 1000 UPTOWN PARK BLVD. #34 HOUSTON TX 77056
Haas Marius director ONE DELL WAY ROUND ROCK TX 78682
Graff Michael J director 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Northcutt R Bruce director 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Jenkins Dorothy C director, 10 percent owner 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Lubel Kimberly S director P.O. BOX 696000 SAN ANTONIO TX 78269-6000
Mccollum Mark A director 3000 NORTH SAM HOUSTON PARKWAY E. HOUSTON TX 77002
Kearns Roger L. officer: EVP, Vinyls Chemicals 2801 POST OAK BLVD. HOUSTON TX 77056
Zoeller Johnathan Stevan officer: VP and CAO 2801 POST OAK BLVD. SUITE 600 HOUSTON TX 77056
Ttwfgp Llc 10 percent owner 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Chao Albert director, 10 percent owner, officer: President & CEO 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Kenner Andrew officer: SVP - Chemical Manufacturing 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Bender Mark Steven officer: EVP and CFO 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056

Westlake Headlines

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