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ProAssurance Corp  (NYSE:PRA) E10: $3.70 (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.

ProAssurance Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.360. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.70 for the trailing ten years ended in Jun. 2017.

As of today, ProAssurance Corp's current stock price is $56.65. ProAssurance Corp's E10 for the quarter that ended in Jun. 2017 was $3.70. ProAssurance Corp's Shiller PE Ratio of today is 15.31.

During the past 13 years, the highest Shiller PE Ratio of ProAssurance Corp was 23.18. The lowest was 11.83. And the median was 15.33.


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.

ProAssurance 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 3.03 3.45 3.66 3.69 3.64

ProAssurance 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 3.59 3.59 3.64 3.69 3.70

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, ProAssurance 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)
=0.36/244.955*244.955
=0.360

Current CPI (Jun. 2017) = 244.955.

ProAssurance Corp Quarterly Data

per share eps CPI Adj_EPS
200709 0.615 208.490 0.723
200712 0.735 210.036 0.857
200803 0.520 213.528 0.597
200806 0.635 218.815 0.711
200809 0.330 218.783 0.369
200812 1.120 210.228 1.305
200903 0.420 212.709 0.484
200906 0.810 215.693 0.920
200909 0.835 215.969 0.947
200912 1.285 215.949 1.458
201003 0.580 217.631 0.653
201006 0.615 217.965 0.691
201009 0.795 218.439 0.892
201012 1.605 219.179 1.794
201103 0.775 223.467 0.850
201106 0.895 225.722 0.971
201109 0.710 226.889 0.767
201112 2.275 225.672 2.469
201203 0.900 229.392 0.961
201206 0.950 229.478 1.014
201209 0.970 231.407 1.027
201212 1.640 229.601 1.750
201303 1.820 232.773 1.915
201306 0.810 233.504 0.850
201309 1.020 234.149 1.067
201312 1.150 233.049 1.209
201403 0.760 236.293 0.788
201406 0.840 238.343 0.863
201409 0.590 238.031 0.607
201412 1.110 234.812 1.158
201503 0.670 236.119 0.695
201506 0.600 238.638 0.616
201509 0.190 237.945 0.196
201512 0.650 236.525 0.673
201603 0.360 238.132 0.370
201606 0.810 241.018 0.823
201609 0.630 241.428 0.639
201612 1.030 241.432 1.045
201703 0.770 243.801 0.774
201706 0.360 244.955 0.360

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.

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

Shiller PE Ratio=Share Price/E10
=56.65/3.70
=15.31

* 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 ProAssurance Corp was 23.18. The lowest was 11.83. And the median was 15.33.


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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