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Twin Disc Inc  (NAS:TWIN) E10: $0.79 (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.

Twin Disc Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.290. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.79 for the trailing ten years ended in Sep. 2017.

As of today, Twin Disc Inc's current stock price is $25.00. Twin Disc Inc's E10 for the quarter that ended in Sep. 2017 was $0.79. Twin Disc Inc's Shiller PE Ratio of today is 31.65.

During the past 13 years, the highest Shiller PE Ratio of Twin Disc Inc was 64.94. The lowest was 5.84. And the median was 19.05.


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.

Twin Disc Inc Annual Data

Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 1.30 1.33 1.07 0.80

Twin Disc 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 1.01 0.92 0.84 0.80 0.79

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, Twin Disc 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)
=0.29/246.819*246.819
=0.290

Current CPI (Sep. 2017) = 246.819.

Twin Disc Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.370 210.036 0.435
200803 0.700 213.528 0.809
200806 0.620 218.815 0.699
200809 0.220 218.783 0.248
200812 0.310 210.228 0.364
200903 0.260 212.709 0.302
200906 0.250 215.693 0.286
200909 -0.220 215.969 -0.251
200912 -0.040 215.949 -0.046
201003 0.130 217.631 0.147
201006 0.180 217.965 0.204
201009 0.240 218.439 0.271
201012 0.350 219.179 0.394
201103 0.400 223.467 0.442
201106 0.590 225.722 0.645
201109 0.830 226.889 0.903
201112 0.500 225.672 0.547
201203 0.860 229.392 0.925
201206 0.110 229.478 0.118
201209 0.110 231.407 0.117
201212 0.290 229.601 0.312
201303 -0.070 232.773 -0.074
201306 0.000 233.504 0.000
201309 0.110 234.149 0.116
201312 0.050 233.049 0.053
201403 -0.040 236.293 -0.042
201406 0.200 238.343 0.207
201409 0.360 238.031 0.373
201412 0.330 234.812 0.347
201503 0.260 236.119 0.272
201506 0.040 238.638 0.041
201509 -0.390 237.945 -0.405
201512 -0.210 236.525 -0.219
201603 -0.090 238.132 -0.093
201606 -0.490 241.018 -0.502
201609 -0.240 241.428 -0.245
201612 -0.260 241.432 -0.266
201703 -0.160 243.801 -0.162
201706 0.100 244.955 0.101
201709 0.290 246.819 0.290

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.

Twin Disc Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=25.00/0.79
=31.65

* 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 Twin Disc Inc was 64.94. The lowest was 5.84. And the median was 19.05.


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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