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Oil-Dri Corp of America  (NYSE:ODC) E10: $1.53 (As of Jul. 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.

Oil-Dri Corp of America's adjusted earnings per share data for the three months ended in Jul. 2017 was $0.180. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.53 for the trailing ten years ended in Jul. 2017.

As of today, Oil-Dri Corp of America's current stock price is $42.76. Oil-Dri Corp of America's E10 for the quarter that ended in Jul. 2017 was $1.53. Oil-Dri Corp of America's Shiller PE Ratio of today is 27.95.

During the past 13 years, the highest Shiller PE Ratio of Oil-Dri Corp of America was 35.63. The lowest was 16.63. And the median was 24.06.


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.

Oil-Dri Corp of America Annual Data

Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.26 1.31 1.36 1.48 1.53

Oil-Dri Corp of America Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 1.48 1.48 1.52 1.54 1.53

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, Oil-Dri Corp of America's adjusted earnings per share data for the three months ended in Jul. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jul. 2017 (Change)*Current CPI (Jul. 2017)
=0.18/244.786*244.786
=0.180

Current CPI (Jul. 2017) = 244.786.

Oil-Dri Corp of America Quarterly Data

per share eps CPI Adj_EPS
200710 0.350 208.936 0.410
200801 0.290 211.080 0.336
200804 0.280 214.823 0.319
200807 0.340 219.964 0.378
200810 0.310 216.573 0.350
200901 0.330 211.143 0.383
200904 0.330 213.240 0.379
200907 0.356 215.351 0.405
200910 0.300 216.177 0.340
201001 0.310 216.687 0.350
201004 0.350 218.009 0.393
201007 0.340 218.011 0.382
201010 0.350 218.711 0.392
201101 0.250 220.223 0.278
201104 0.260 224.906 0.283
201107 0.400 225.922 0.433
201110 0.150 226.421 0.162
201201 0.450 226.665 0.486
201204 0.260 230.085 0.277
201207 -0.010 229.104 -0.011
201210 0.640 231.317 0.677
201301 0.310 230.280 0.330
201304 0.460 232.531 0.484
201307 0.670 233.596 0.702
201310 0.410 233.546 0.430
201401 0.600 233.916 0.628
201404 0.100 237.072 0.103
201407 0.060 238.250 0.062
201410 0.300 237.433 0.309
201501 0.390 233.707 0.408
201504 0.190 236.599 0.197
201507 0.710 238.654 0.728
201510 0.750 237.838 0.772
201601 0.530 236.916 0.548
201604 -0.140 239.261 -0.143
201607 0.720 240.628 0.732
201610 0.280 241.729 0.284
201701 0.580 242.839 0.585
201704 0.440 244.524 0.440
201707 0.180 244.786 0.180

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.

Oil-Dri Corp of America's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=42.76/1.53
=27.95

* 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 Oil-Dri Corp of America was 35.63. The lowest was 16.63. And the median was 24.06.


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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