Switch to:
PPG Industries Inc  (NYSE:PPG) E10: $4.53 (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.

PPG Industries Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $1.940. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.53 for the trailing ten years ended in Jun. 2017.

As of today, PPG Industries Inc's current stock price is $117.42. PPG Industries Inc's E10 for the quarter that ended in Jun. 2017 was $4.53. PPG Industries Inc's Shiller PE Ratio of today is 25.92.

During the past 13 years, the highest Shiller PE Ratio of PPG Industries Inc was 31.24. The lowest was 8.81. And the median was 23.25.


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.

PPG Industries Inc 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 2.32 3.26 3.79 4.13 4.28

PPG Industries Inc 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 4.21 4.28 4.38 4.53 0.00

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, PPG Industries Inc'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)
=1.94/244.955*244.955
=1.940

Current CPI (Jun. 2017) = 244.955.

PPG Industries Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.575 208.490 0.676
200712 0.605 210.036 0.706
200803 0.305 213.528 0.350
200806 0.755 218.815 0.845
200809 0.350 218.783 0.392
200812 0.215 210.228 0.251
200903 -0.340 212.709 -0.392
200906 0.445 215.693 0.505
200909 0.480 215.969 0.544
200912 0.430 215.949 0.488
201003 0.090 217.631 0.101
201006 0.815 217.965 0.916
201009 0.790 218.439 0.886
201012 0.620 219.179 0.693
201103 0.700 223.467 0.767
201106 1.060 225.722 1.150
201109 0.980 226.889 1.058
201112 0.695 225.672 0.754
201203 0.040 229.392 0.043
201206 1.170 229.478 1.249
201209 1.090 231.407 1.154
201212 0.725 229.601 0.773
201303 8.155 232.773 8.582
201306 1.175 233.504 1.233
201309 0.780 234.149 0.816
201312 0.935 233.049 0.983
201403 4.485 236.293 4.649
201406 1.380 238.343 1.418
201409 1.330 238.031 1.369
201412 0.290 234.812 0.303
201503 1.170 236.119 1.214
201506 1.230 238.638 1.263
201509 1.590 237.945 1.637
201512 1.160 236.525 1.201
201603 1.290 238.132 1.327
201606 1.370 241.018 1.392
201609 -0.690 241.428 -0.700
201612 1.300 241.432 1.319
201703 1.290 243.801 1.296
201706 1.940 244.955 1.940

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.

PPG Industries Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=117.42/4.53
=25.92

* 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 PPG Industries Inc was 31.24. The lowest was 8.81. And the median was 23.25.


Be Aware

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


Related Terms


Headlines

From the Internet

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK