Switch to:
The Scotts Miracle Gro Co  (NYSE:SMG) E10: $2.72 (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.

The Scotts Miracle Gro Co's adjusted earnings per share data for the three months ended in Sep. 2017 was $-0.540. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.72 for the trailing ten years ended in Sep. 2017.

As of today, The Scotts Miracle Gro Co's current stock price is $106.28. The Scotts Miracle Gro Co's E10 for the quarter that ended in Sep. 2017 was $2.72. The Scotts Miracle Gro Co's Shiller PE Ratio of today is 39.07.

During the past 13 years, the highest Shiller PE Ratio of The Scotts Miracle Gro Co was 40.79. The lowest was 13.47. And the median was 28.88.


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.

The Scotts Miracle Gro Co Annual Data

Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.00 2.10 2.17 2.50 2.72

The Scotts Miracle Gro Co 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 2.50 2.50 2.65 2.67 2.72

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, The Scotts Miracle Gro Co'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)
=-0.54/246.819*246.819
=-0.540

Current CPI (Sep. 2017) = 246.819.

The Scotts Miracle Gro Co Quarterly Data

per share eps CPI Adj_EPS
200712 -0.890 210.036 -1.046
200803 0.880 213.528 1.017
200806 0.350 218.815 0.395
200809 -0.540 218.783 -0.609
200812 -0.880 210.228 -1.033
200903 1.180 212.709 1.369
200906 2.240 215.693 2.563
200909 -0.230 215.969 -0.263
200912 -0.880 215.949 -1.006
201003 1.760 217.631 1.996
201006 2.590 217.965 2.933
201009 -0.500 218.439 -0.565
201012 -1.020 219.179 -1.149
201103 2.630 223.467 2.905
201106 1.690 225.722 1.848
201109 -0.770 226.889 -0.838
201112 -1.210 225.672 -1.323
201203 2.050 229.392 2.206
201206 1.500 229.478 1.613
201209 -0.660 231.407 -0.704
201212 -1.100 229.601 -1.182
201303 1.600 232.773 1.697
201306 2.370 233.504 2.505
201309 -0.320 234.149 -0.337
201312 -1.060 233.049 -1.123
201403 2.000 236.293 2.089
201406 1.950 238.343 2.019
201409 -0.250 238.031 -0.259
201412 -1.230 234.812 -1.293
201503 2.010 236.119 2.101
201506 2.140 238.638 2.213
201509 -0.390 237.945 -0.405
201512 -1.320 236.525 -1.377
201603 3.380 238.132 3.503
201606 3.440 241.018 3.523
201609 -0.410 241.428 -0.419
201612 -1.090 241.432 -1.114
201703 2.730 243.801 2.764
201706 2.530 244.955 2.549
201709 -0.540 246.819 -0.540

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.

The Scotts Miracle Gro Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=106.28/2.72
=39.07

* 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 The Scotts Miracle Gro Co was 40.79. The lowest was 13.47. And the median was 28.88.


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