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Sturm Ruger & Co Inc  (NYSE:RGR) E10: $2.82 (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.

Sturm Ruger & Co Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.530. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.82 for the trailing ten years ended in Sep. 2017.

As of today, Sturm Ruger & Co Inc's current stock price is $50.35. Sturm Ruger & Co Inc's E10 for the quarter that ended in Sep. 2017 was $2.82. Sturm Ruger & Co Inc's Shiller PE Ratio of today is 17.85.

During the past 13 years, the highest Shiller PE Ratio of Sturm Ruger & Co Inc was 65.64. The lowest was 8.78. And the median was 25.80.


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.

Sturm Ruger & Co 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 1.12 1.67 1.79 2.08 2.57

Sturm Ruger & Co 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 2.45 2.57 2.68 2.74 2.82

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, Sturm Ruger & Co 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)
=0.53/246.819*246.819
=0.530

Current CPI (Sep. 2017) = 246.819.

Sturm Ruger & Co Inc Quarterly Data

per share eps CPI Adj_EPS
200712 -0.090 210.036 -0.106
200803 0.070 213.528 0.081
200806 0.050 218.815 0.056
200809 0.020 218.783 0.023
200812 0.290 210.228 0.340
200903 0.300 212.709 0.348
200906 0.450 215.693 0.515
200909 0.370 215.969 0.423
200912 0.300 215.949 0.343
201003 0.430 217.631 0.488
201006 0.420 217.965 0.476
201009 0.310 218.439 0.350
201012 0.290 219.179 0.327
201103 0.420 223.467 0.464
201106 0.560 225.722 0.612
201109 0.560 226.889 0.609
201112 0.540 225.672 0.591
201203 0.790 229.392 0.850
201206 0.910 229.478 0.979
201209 0.880 231.407 0.939
201212 1.020 229.601 1.096
201303 1.200 232.773 1.272
201306 1.630 233.504 1.723
201309 1.440 234.149 1.518
201312 1.330 233.049 1.409
201403 1.220 236.293 1.274
201406 1.120 238.343 1.160
201409 0.340 238.031 0.353
201412 -0.760 234.812 -0.799
201503 0.810 236.119 0.847
201506 0.910 238.638 0.941
201509 0.620 237.945 0.643
201512 0.880 236.525 0.918
201603 1.210 238.132 1.254
201606 1.220 241.018 1.249
201609 1.030 241.428 1.053
201612 1.110 241.432 1.135
201703 1.210 243.801 1.225
201706 0.570 244.955 0.574
201709 0.530 246.819 0.530

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.

Sturm Ruger & Co Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=50.35/2.82
=17.85

* 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 Sturm Ruger & Co Inc was 65.64. The lowest was 8.78. And the median was 25.80.


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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