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Old Republic International Corp  (NYSE:ORI) E10: $0.35 (As of Jun. 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.

Old Republic International Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.350. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.35 for the trailing ten years ended in Jun. 2017.

As of today, Old Republic International Corp's current stock price is $19.60. Old Republic International Corp's E10 for the quarter that ended in Jun. 2017 was $0.35. Old Republic International Corp's Shiller PE Ratio of today is 56.00.

During the past 13 years, the highest Shiller PE Ratio of Old Republic International Corp was 58.31. The lowest was 4.93. And the median was 12.04.


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.

Old Republic International Corp Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.76 0.67 0.58 0.45 0.38

Old Republic International Corp Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 0.41 0.39 0.38 0.37 0.35

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, Old Republic International Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=0.35/244.955*244.955
=0.350

Current CPI (Jun. 2017) = 244.955.

Old Republic International Corp Quarterly Data

per share eps CPI Adj_EPS
200709 0.120 208.490 0.141
200712 0.090 210.036 0.105
200803 -0.080 213.528 -0.092
200806 -1.580 218.815 -1.769
200809 -0.210 218.783 -0.235
200812 -0.540 210.228 -0.629
200903 -0.230 212.709 -0.265
200906 -0.070 215.693 -0.079
200909 0.030 215.969 0.034
200912 -0.160 215.949 -0.181
201003 0.110 217.631 0.124
201006 0.230 217.965 0.258
201009 -0.160 218.439 -0.179
201012 -0.050 219.179 -0.056
201103 -0.050 223.467 -0.055
201106 -0.260 225.722 -0.282
201109 -0.460 226.889 -0.497
201112 0.220 225.672 0.239
201203 0.000 229.392 0.000
201206 -0.130 229.478 -0.139
201209 -0.060 231.407 -0.064
201212 -0.080 229.601 -0.085
201303 0.210 232.773 0.221
201306 0.670 233.504 0.703
201309 0.360 234.149 0.377
201312 0.330 233.049 0.347
201403 0.670 236.293 0.695
201406 0.240 238.343 0.247
201409 0.300 238.031 0.309
201412 0.230 234.812 0.240
201503 0.360 236.119 0.373
201506 0.360 238.638 0.370
201509 0.440 237.945 0.453
201512 0.320 236.525 0.331
201603 0.430 238.132 0.442
201606 0.350 241.018 0.356
201609 0.390 241.428 0.396
201612 0.450 241.432 0.457
201703 0.390 243.801 0.392
201706 0.350 244.955 0.350

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.

Old Republic International Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=19.60/0.35
=56.00

* 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 Old Republic International Corp was 58.31. The lowest was 4.93. And the median was 12.04.


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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