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Constellation Brands Inc  (NYSE:STZ) E10: $3.49 (As of Aug. 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.

Constellation Brands Inc's adjusted earnings per share data for the three months ended in Aug. 2017 was $2.480. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.49 for the trailing ten years ended in Aug. 2017.

As of today, Constellation Brands Inc's current stock price is $216.29. Constellation Brands Inc's E10 for the quarter that ended in Aug. 2017 was $3.49. Constellation Brands Inc's Shiller PE Ratio of today is 61.97.

During the past 13 years, the highest Shiller PE Ratio of Constellation Brands Inc was 67.09. The lowest was 17.15. And the median was 36.30.


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.

Constellation Brands Inc Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.87 1.73 2.00 2.37 3.03

Constellation Brands Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
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 2.67 2.82 3.03 3.25 3.49

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, Constellation Brands Inc's adjusted earnings per share data for the three months ended in Aug. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2017 (Change)*Current CPI (Aug. 2017)
=2.48/245.519*245.519
=2.480

Current CPI (Aug. 2017) = 245.519.

Constellation Brands Inc Quarterly Data

per share eps CPI Adj_EPS
200711 0.550 210.177 0.642
200802 -3.850 211.693 -4.465
200805 0.200 216.632 0.227
200808 -0.110 219.086 -0.123
200811 0.380 212.425 0.439
200902 -1.890 212.193 -2.187
200905 0.030 213.856 0.034
200908 0.410 215.834 0.466
200911 0.200 216.330 0.227
201002 -0.230 216.741 -0.261
201005 0.220 218.178 0.248
201008 0.430 218.312 0.484
201011 0.650 218.803 0.729
201102 1.320 221.309 1.464
201105 0.350 225.964 0.380
201108 0.760 226.545 0.824
201111 0.520 226.230 0.564
201202 0.510 227.663 0.550
201205 0.380 229.815 0.406
201208 0.670 230.379 0.714
201211 0.580 230.221 0.619
201302 0.420 232.166 0.444
201305 0.270 232.945 0.285
201308 7.740 233.877 8.125
201311 1.070 233.069 1.127
201402 0.760 234.781 0.795
201405 1.030 237.900 1.063
201408 0.980 237.852 1.012
201411 1.100 236.151 1.144
201502 1.060 234.722 1.109
201505 1.180 237.805 1.218
201508 1.490 238.316 1.535
201511 1.330 237.336 1.376
201602 1.190 237.111 1.232
201605 1.550 240.229 1.584
201608 1.750 240.849 1.784
201611 1.980 241.353 2.014
201702 2.250 243.603 2.268
201705 2.000 244.733 2.006
201708 2.480 245.519 2.480

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.

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

Shiller PE Ratio=Share Price/E10
=216.29/3.49
=61.97

* 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 Constellation Brands Inc was 67.09. The lowest was 17.15. And the median was 36.30.


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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