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Trinity Industries Inc  (NYSE:TRN) E10: $2.03 (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.

Trinity Industries Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.430. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.03 for the trailing ten years ended in Sep. 2017.

As of today, Trinity Industries Inc's current stock price is $34.04. Trinity Industries Inc's E10 for the quarter that ended in Sep. 2017 was $2.03. Trinity Industries Inc's Shiller PE Ratio of today is 16.77.

During the past 13 years, the highest Shiller PE Ratio of Trinity Industries Inc was 43.58. The lowest was 5.33. And the median was 22.26.


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.

Trinity Industries 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 0.81 1.08 1.48 1.93 2.02

Trinity Industries 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 2.02 2.02 2.03 2.03 2.03

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, Trinity Industries 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)
=0.43/246.819*246.819
=0.430

Current CPI (Sep. 2017) = 246.819.

Trinity Industries Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.490 210.036 0.576
200803 0.405 213.528 0.468
200806 0.530 218.815 0.598
200809 0.545 218.783 0.615
200812 0.275 210.228 0.323
200903 0.215 212.709 0.249
200906 -1.375 215.693 -1.573
200909 0.145 215.969 0.166
200912 0.095 215.949 0.109
201003 0.010 217.631 0.011
201006 0.115 217.965 0.130
201009 0.185 218.439 0.209
201012 0.110 219.179 0.124
201103 0.150 223.467 0.166
201106 0.185 225.722 0.202
201109 0.200 226.889 0.218
201112 0.350 225.672 0.383
201203 0.330 229.392 0.355
201206 0.420 229.478 0.452
201209 0.400 231.407 0.427
201212 0.445 229.601 0.478
201303 0.495 232.773 0.525
201306 0.520 233.504 0.550
201309 0.630 234.149 0.664
201312 0.720 233.049 0.763
201403 1.420 236.293 1.483
201406 1.010 238.343 1.046
201409 0.910 238.031 0.944
201412 0.860 234.812 0.904
201503 1.130 236.119 1.181
201506 1.330 238.638 1.376
201509 1.310 237.945 1.359
201512 1.300 236.525 1.357
201603 0.640 238.132 0.663
201606 0.620 241.018 0.635
201609 0.550 241.428 0.562
201612 0.440 241.432 0.450
201703 0.300 243.801 0.304
201706 0.330 244.955 0.333
201709 0.430 246.819 0.430

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.

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

Shiller PE Ratio=Share Price/E10
=34.04/2.03
=16.77

* 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 Trinity Industries Inc was 43.58. The lowest was 5.33. And the median was 22.26.


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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