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Transcontinental (TSX:TCL.A) E10 : C$2.29 (As of Jan. 2024)


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What is Transcontinental 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.

Transcontinental's adjusted earnings per share data for the three months ended in Jan. 2024 was C$0.160. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is C$2.29 for the trailing ten years ended in Jan. 2024.

During the past 12 months, Transcontinental's average E10 Growth Rate was 10.10% per year. During the past 3 years, the average E10 Growth Rate was 15.30% per year. During the past 5 years, the average E10 Growth Rate was 12.00% per year. During the past 10 years, the average E10 Growth Rate was 13.70% 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 Transcontinental was 23.40% per year. The lowest was -19.80% per year. And the median was 7.55% per year.

As of today (2024-05-16), Transcontinental's current stock price is C$13.62. Transcontinental's E10 for the quarter that ended in Jan. 2024 was C$2.29. Transcontinental's Shiller PE Ratio of today is 5.95.

During the past 13 years, the highest Shiller PE Ratio of Transcontinental was 30.86. The lowest was 4.46. And the median was 15.95.


Transcontinental E10 Historical Data

The historical data trend for Transcontinental'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.

Transcontinental E10 Chart

Transcontinental Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.58 1.50 1.54 2.10 2.30

Transcontinental Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 2.08 2.10 2.09 2.30 2.29

Competitive Comparison of Transcontinental's E10

For the Packaging & Containers subindustry, Transcontinental'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.


Transcontinental's Shiller PE Ratio Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Transcontinental's Shiller PE Ratio distribution charts can be found below:

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



Transcontinental 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, Transcontinental's adjusted earnings per share data for the three months ended in Jan. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.16/125.0724*125.0724
=0.160

Current CPI (Jan. 2024) = 125.0724.

Transcontinental Quarterly Data

per share eps CPI Adj_EPS
201404 0.440 98.920 0.556
201407 0.560 99.315 0.705
201410 0.120 99.473 0.151
201501 0.480 98.209 0.611
201504 1.040 99.710 1.305
201507 0.550 100.579 0.684
201510 1.280 100.500 1.593
201601 0.480 100.184 0.599
201604 0.070 101.370 0.086
201607 0.590 101.844 0.725
201610 0.740 102.002 0.907
201701 0.550 102.318 0.672
201704 0.600 103.029 0.728
201707 0.640 103.029 0.777
201710 0.950 103.424 1.149
201801 0.750 104.056 0.901
201804 0.890 105.320 1.057
201807 0.220 106.110 0.259
201810 0.770 105.952 0.909
201901 0.320 105.557 0.379
201904 0.260 107.453 0.303
201907 0.040 108.243 0.046
201910 1.280 107.927 1.483
202001 0.070 108.085 0.081
202004 0.300 107.216 0.350
202007 0.550 108.401 0.635
202010 0.590 108.638 0.679
202101 0.320 109.192 0.367
202104 0.410 110.851 0.463
202107 0.320 112.431 0.356
202110 0.450 113.695 0.495
202201 0.210 114.801 0.229
202204 0.330 118.357 0.349
202207 0.390 120.964 0.403
202210 0.700 121.517 0.720
202301 0.010 121.596 0.010
202304 0.260 123.571 0.263
202307 0.240 124.914 0.240
202310 0.480 125.310 0.479
202401 0.160 125.072 0.160

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


Transcontinental  (TSX:TCL.A) 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.

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

Shiller PE Ratio=Share Price/E10
=13.62/2.29
=5.95

* 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 Transcontinental was 30.86. The lowest was 4.46. And the median was 15.95.


Be Aware

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


Transcontinental E10 Related Terms

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


Transcontinental (TSX:TCL.A) Business Description

Traded in Other Exchanges
Address
1 Place Ville Marie, Suite 3240, Affaires Juridiques,, A/s Caroline Hamel, Montreal, QC, CAN, H3B 0G1
Transcontinental Inc or TC Transcontinental, is a Canadian printer and flexible packaging provider that operates in three segments: packaging, printing, and other. Its packaging segment features the production of different plastic products geared toward consumer goods. Production plants specialize in extrusion, lamination, printing, and converting. The company offers premedia, printing, and distribution services through the printing segment. Publishers, retailers, cataloguers, and marketers are some of the customers who tap TC Transcontinental for these printing solutions. The smaller other segment focuses on the media sector, which generates revenue from print and digital publishing products.

Transcontinental (TSX:TCL.A) Headlines

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