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Stantec Inc  (NYSE:STN) E10: $0.90 (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.

Stantec Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.326. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.90 for the trailing ten years ended in Sep. 2017.

As of today, Stantec Inc's current stock price is $27.70. Stantec Inc's E10 for the quarter that ended in Sep. 2017 was $0.90. Stantec Inc's Shiller PE Ratio of today is 30.78.

During the past 13 years, the highest Shiller PE Ratio of Stantec Inc was 46.92. The lowest was 16.54. And the median was 30.58.


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.

Stantec 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 0.69 0.76 0.80 0.74 0.80

Stantec 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 0.82 0.80 0.77 0.84 0.90

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, Stantec 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)
=0.325759426663/246.819*246.819
=0.326

Current CPI (Sep. 2017) = 246.819.

Stantec Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.205 210.036 0.240
200803 0.184 213.528 0.213
200806 0.236 218.815 0.266
200809 -0.312 218.783 -0.352
200812 0.174 210.228 0.205
200903 0.178 212.709 0.206
200906 0.218 215.693 0.249
200909 -0.102 215.969 -0.116
200912 0.237 215.949 0.271
201003 0.171 217.631 0.194
201006 0.251 217.965 0.284
201009 0.329 218.439 0.372
201012 0.253 219.179 0.285
201103 0.266 223.467 0.294
201106 0.287 225.722 0.314
201109 0.314 226.889 0.342
201112 -0.703 225.672 -0.769
201203 0.277 229.392 0.298
201206 0.326 229.478 0.351
201209 0.378 231.407 0.403
201212 0.338 229.601 0.364
201303 0.298 232.773 0.316
201306 0.378 233.504 0.400
201309 0.474 234.149 0.499
201312 0.357 233.049 0.378
201403 0.320 236.293 0.334
201406 0.434 238.343 0.449
201409 0.463 238.031 0.480
201412 0.347 234.812 0.365
201503 0.317 236.119 0.331
201506 0.372 238.638 0.385
201509 0.400 237.945 0.414
201512 0.190 236.525 0.198
201603 0.242 238.132 0.251
201606 0.155 241.018 0.159
201609 0.328 241.428 0.335
201612 0.187 241.432 0.192
201703 -0.381 243.801 -0.386
201706 0.639 244.955 0.644
201709 0.326 246.819 0.326

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.

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

Shiller PE Ratio=Share Price/E10
=27.70/0.90
=30.78

* 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 Stantec Inc was 46.92. The lowest was 16.54. And the median was 30.58.


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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