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Ryder System Inc  (NYSE:R) E10: $3.99 (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.

Ryder System Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.110. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.99 for the trailing ten years ended in Sep. 2017.

As of today, Ryder System Inc's current stock price is $88.88. Ryder System Inc's E10 for the quarter that ended in Sep. 2017 was $3.99. Ryder System Inc's Shiller PE Ratio of today is 22.28.

During the past 13 years, the highest Shiller PE Ratio of Ryder System Inc was 26.08. The lowest was 5.68. And the median was 16.62.


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.

Ryder System 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 3.46 3.69 3.72 3.90 3.99

Ryder System 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 4.03 3.99 4.00 3.97 3.99

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, Ryder System Inc'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)
=1.11/246.819*246.819
=1.110

Current CPI (Sep. 2017) = 246.819.

Ryder System Inc Quarterly Data

per share eps CPI Adj_EPS
200712 1.230 210.036 1.445
200803 0.960 213.528 1.110
200806 1.090 218.815 1.229
200809 1.240 218.783 1.399
200812 0.200 210.228 0.235
200903 0.120 212.709 0.139
200906 0.410 215.693 0.469
200909 0.430 215.969 0.491
200912 0.150 215.949 0.171
201003 0.230 217.631 0.261
201006 0.560 217.965 0.634
201009 0.740 218.439 0.836
201012 0.710 219.179 0.800
201103 0.480 223.467 0.530
201106 0.770 225.722 0.842
201109 1.100 226.889 1.197
201112 0.930 225.672 1.017
201203 0.670 229.392 0.721
201206 0.910 229.478 0.979
201209 1.470 231.407 1.568
201212 1.050 229.601 1.129
201303 0.770 232.773 0.816
201306 1.190 233.504 1.258
201309 1.350 234.149 1.423
201312 1.220 233.049 1.292
201403 0.900 236.293 0.940
201406 1.410 238.343 1.460
201409 1.570 238.031 1.628
201412 0.210 234.812 0.221
201503 0.990 236.119 1.035
201506 1.590 238.638 1.645
201509 1.690 237.945 1.753
201512 1.430 236.525 1.492
201603 1.040 238.132 1.078
201606 1.380 241.018 1.413
201609 1.590 241.428 1.626
201612 0.900 241.432 0.920
201703 0.710 243.801 0.719
201706 0.960 244.955 0.967
201709 1.110 246.819 1.110

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.

Ryder System Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=88.88/3.99
=22.28

* 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 Ryder System Inc was 26.08. The lowest was 5.68. And the median was 16.62.


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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