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Pool Corp  (NAS:POOL) E10: $2.15 (As of Sep. 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.

Pool Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.160. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.15 for the trailing ten years ended in Sep. 2017.

As of today, Pool Corp's current stock price is $120.94. Pool Corp's E10 for the quarter that ended in Sep. 2017 was $2.15. Pool Corp's Shiller PE Ratio of today is 56.25.

During the past 13 years, the highest Shiller PE Ratio of Pool Corp was 62.46. The lowest was 10.93. And the median was 33.76.


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.

Pool 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 1.36 1.48 1.58 1.71 1.89

Pool Corp Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 1.87 1.89 1.95 2.06 2.15

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, Pool Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=1.16/246.819*246.819
=1.160

Current CPI (Sep. 2017) = 246.819.

Pool Corp Quarterly Data

per share eps CPI Adj_EPS
200712 -0.220 210.036 -0.259
200803 -0.070 213.528 -0.081
200806 1.090 218.815 1.229
200809 0.450 218.783 0.508
200812 -0.310 210.228 -0.364
200903 -0.130 212.709 -0.151
200906 0.990 215.693 1.133
200909 -0.190 215.969 -0.217
200912 -0.290 215.949 -0.331
201003 -0.120 217.631 -0.136
201006 1.050 217.965 1.189
201009 0.450 218.439 0.508
201012 -0.230 219.179 -0.259
201103 -0.010 223.467 -0.011
201106 1.190 225.722 1.301
201109 0.500 226.889 0.544
201112 -0.210 225.672 -0.230
201203 0.080 229.392 0.086
201206 1.340 229.478 1.441
201209 0.450 231.407 0.480
201212 -0.160 229.601 -0.172
201303 0.070 232.773 0.074
201306 1.390 233.504 1.469
201309 0.680 234.149 0.717
201312 -0.100 233.049 -0.106
201403 0.090 236.293 0.094
201406 1.610 238.343 1.667
201409 0.780 238.031 0.809
201412 -0.030 234.812 -0.032
201503 0.190 236.119 0.199
201506 1.750 238.638 1.810
201509 0.900 237.945 0.934
201512 0.070 236.525 0.073
201603 0.380 238.132 0.394
201606 1.980 241.018 2.028
201609 1.030 241.428 1.053
201612 0.080 241.432 0.082
201703 0.520 243.801 0.526
201706 2.210 244.955 2.227
201709 1.160 246.819 1.160

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.

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

Shiller PE Ratio=Share Price/E10
=120.94/2.15
=56.25

* 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 Pool Corp was 62.46. The lowest was 10.93. And the median was 33.76.


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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