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Atco (TSX:ACO.Y) E10 : C$3.30 (As of Mar. 2024)


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What is Atco E10?

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.

Atco's adjusted earnings per share data for the three months ended in Mar. 2024 was C$1.310. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is C$3.30 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Atco's average E10 Growth Rate was -1.20% per year. During the past 3 years, the average E10 Growth Rate was 2.00% per year. During the past 5 years, the average E10 Growth Rate was 2.10% per year. During the past 10 years, the average E10 Growth Rate was 2.70% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Atco was 12.00% per year. The lowest was 1.10% per year. And the median was 9.60% per year.

As of today (2024-05-14), Atco's current stock price is C$42.50. Atco's E10 for the quarter that ended in Mar. 2024 was C$3.30. Atco's Shiller PE Ratio of today is 12.88.

During the past 13 years, the highest Shiller PE Ratio of Atco was 21.40. The lowest was 10.41. And the median was 14.31.


Atco E10 Historical Data

The historical data trend for Atco's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Atco E10 Chart

Atco Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.16 3.12 3.15 3.27 3.31

Atco Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
E10 Get a 7-Day Free Trial 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 3.34 3.34 3.30 3.31 3.30

Competitive Comparison of Atco's E10

For the Utilities - Diversified subindustry, Atco's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


Atco's Shiller PE Ratio Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Atco's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Atco's Shiller PE Ratio falls into.



Atco E10 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.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Atco's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=1.31/125.4675*125.4675
=1.310

Current CPI (Mar. 2024) = 125.4675.

Atco Quarterly Data

per share eps CPI Adj_EPS
201406 0.570 99.473 0.719
201409 1.150 99.394 1.452
201412 0.820 98.367 1.046
201503 0.820 99.789 1.031
201506 0.060 100.500 0.075
201509 0.460 100.421 0.575
201512 -0.010 99.947 -0.013
201603 0.950 101.054 1.180
201606 0.530 102.002 0.652
201609 0.610 101.765 0.752
201612 0.870 101.449 1.076
201703 0.860 102.634 1.051
201706 0.370 103.029 0.451
201709 0.400 103.345 0.486
201712 0.280 103.345 0.340
201803 0.780 105.004 0.932
201806 -0.100 105.557 -0.119
201809 1.000 105.636 1.188
201812 1.180 105.399 1.405
201903 0.980 106.979 1.149
201906 1.370 107.690 1.596
201909 1.400 107.611 1.632
201912 0.720 107.769 0.838
202003 0.760 107.927 0.884
202006 0.390 108.401 0.451
202009 0.470 108.164 0.545
202012 0.580 108.559 0.670
202103 0.720 110.298 0.819
202106 0.100 111.720 0.112
202109 0.460 112.905 0.511
202112 0.870 113.774 0.959
202203 1.120 117.646 1.194
202206 0.790 120.806 0.820
202209 0.620 120.648 0.645
202212 0.710 120.964 0.736
202303 1.470 122.702 1.503
202306 0.700 124.203 0.707
202309 0.800 125.230 0.802
202312 0.850 125.468 0.850
202403 1.310 125.468 1.310

Add all the adjusted EPS together and divide 10 will get our e10.


Atco  (TSX:ACO.Y) 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.

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

Shiller PE Ratio=Share Price/E10
=42.50/3.3
=12.88

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Shiller P/E Ratio of Atco was 21.40. The lowest was 10.41. And the median was 14.31.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Atco E10 Related Terms

Thank you for viewing the detailed overview of Atco's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Atco (TSX:ACO.Y) Business Description

Traded in Other Exchanges
Address
5302 Forand Street SW, 4th Floor, West Building, Calgary, AB, CAN, T3E 8B4
Atco Ltd is a Canadian holding company that offers gas, electric, and infrastructure solutions. The largest subsidiary of the company is Canadian utilities, which operates natural gas, electricity, and logistical services. Atco's primary segments include Structures and Logistics; Utilities; Energy Infrastructure; Neltume Ports and Corporate and Other. It generates maximum revenue from the Utilities segment. Geographically, it derives most of its revenue from Canada.

Atco (TSX:ACO.Y) Headlines

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