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Toro Co  (NYSE:TTC) E10: $1.46 (As of Jul. 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.

Toro Co's adjusted earnings per share data for the three months ended in Jul. 2017 was $0.610. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.46 for the trailing ten years ended in Jul. 2017.

As of today, Toro Co's current stock price is $62.32. Toro Co's E10 for the quarter that ended in Jul. 2017 was $1.46. Toro Co's Shiller PE Ratio of today is 42.68.

During the past 13 years, the highest Shiller PE Ratio of Toro Co was 50.98. The lowest was 10.56. And the median was 27.39.


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.

Toro Co Annual Data

Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.87 0.96 1.06 1.18 1.31

Toro Co Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 1.29 1.31 1.35 1.42 1.46

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, Toro Co's adjusted earnings per share data for the three months ended in Jul. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jul. 2017 (Change)*Current CPI (Jul. 2017)
=0.61/244.786*244.786
=0.610

Current CPI (Jul. 2017) = 244.786.

Toro Co Quarterly Data

per share eps CPI Adj_EPS
200710 0.043 208.936 0.050
200801 0.118 211.080 0.137
200804 0.400 214.823 0.456
200807 0.248 219.964 0.276
200810 0.010 216.573 0.011
200901 0.045 211.143 0.052
200904 0.250 213.240 0.287
200907 0.135 215.351 0.153
200910 0.000 216.177 0.000
201001 0.080 216.687 0.090
201004 0.335 218.009 0.376
201007 0.253 218.011 0.284
201010 0.730 218.711 0.817
201101 0.133 220.223 0.148
201104 0.470 224.906 0.512
201107 0.275 225.922 0.298
201110 0.045 226.421 0.049
201201 0.165 226.665 0.178
201204 0.565 230.085 0.601
201207 0.335 229.104 0.358
201210 0.005 231.317 0.005
201301 0.265 230.280 0.282
201304 0.660 232.531 0.695
201307 0.340 233.596 0.356
201310 0.045 233.546 0.047
201401 0.220 233.916 0.230
201404 0.755 237.072 0.780
201407 0.435 238.250 0.447
201410 0.100 237.433 0.103
201501 0.270 233.707 0.283
201504 0.820 236.599 0.848
201507 0.470 238.654 0.482
201510 0.215 237.838 0.221
201601 0.350 236.916 0.362
201604 0.940 239.261 0.962
201607 0.500 240.628 0.509
201610 0.270 241.729 0.273
201701 0.410 242.839 0.413
201704 1.080 244.524 1.081
201707 0.610 244.786 0.610

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.

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

Shiller PE Ratio=Share Price/E10
=62.32/1.46
=42.68

* 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 Toro Co was 50.98. The lowest was 10.56. And the median was 27.39.


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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