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Rockwell Automation Inc  (NYSE:ROK) E10: $5.07 (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.

Rockwell Automation Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $1.670. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $5.07 for the trailing ten years ended in Jun. 2017.

As of today, Rockwell Automation Inc's current stock price is $186.44. Rockwell Automation Inc's E10 for the quarter that ended in Jun. 2017 was $5.07. Rockwell Automation Inc's Shiller PE Ratio of today is 36.77.

During the past 13 years, the highest Shiller PE Ratio of Rockwell Automation Inc was 37.59. The lowest was 6.52. And the median was 21.89.


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.

Rockwell Automation Inc Annual Data

Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.06 4.44 4.92 5.23 5.44

Rockwell Automation Inc 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 5.41 5.44 5.31 4.98 5.07

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, Rockwell Automation 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)
=1.67/244.955*244.955
=1.670

Current CPI (Jun. 2017) = 244.955.

Rockwell Automation Inc Quarterly Data

per share eps CPI Adj_EPS
200709 1.160 208.490 1.363
200712 1.040 210.036 1.213
200803 0.960 213.528 1.101
200806 1.030 218.815 1.153
200809 0.870 218.783 0.974
200812 0.830 210.228 0.967
200903 0.290 212.709 0.334
200906 0.230 215.693 0.261
200909 0.200 215.969 0.227
200912 0.530 215.949 0.601
201003 0.950 217.631 1.069
201006 0.830 217.965 0.933
201009 0.910 218.439 1.020
201012 1.040 219.179 1.162
201103 1.140 223.467 1.250
201106 1.230 225.722 1.335
201109 1.400 226.889 1.511
201112 1.270 225.672 1.379
201203 1.160 229.392 1.239
201206 1.330 229.478 1.420
201209 1.370 231.407 1.450
201212 1.140 229.601 1.216
201303 1.240 232.773 1.305
201306 1.450 233.504 1.521
201309 1.530 234.149 1.601
201312 1.410 233.049 1.482
201403 1.280 236.293 1.327
201406 1.430 238.343 1.470
201409 1.790 238.031 1.842
201412 1.560 234.812 1.627
201503 1.510 236.119 1.567
201506 1.520 238.638 1.560
201509 1.490 237.945 1.534
201512 1.400 236.525 1.450
201603 1.280 238.132 1.317
201606 1.460 241.018 1.484
201609 1.430 241.428 1.451
201612 1.650 241.432 1.674
201703 1.450 243.801 1.457
201706 1.670 244.955 1.670

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.

Rockwell Automation Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=186.44/5.07
=36.77

* 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 Rockwell Automation Inc was 37.59. The lowest was 6.52. And the median was 21.89.


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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