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Two Harbors Investment Corp  (NYSE:TWO) E10: $0.00 (As of Jun. 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.

Two Harbors Investment Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.010. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.00 for the trailing ten years ended in Jun. 2017.

As of today, Two Harbors Investment Corp's current stock price is $10.17. Two Harbors Investment Corp's E10 for the quarter that ended in Jun. 2017 was $0.00. Two Harbors Investment Corp's Shiller PE Ratio of today is .

During the past 10 years, the highest Shiller PE Ratio of Two Harbors Investment Corp was 12.52. The lowest was 0.00. And the median was 10.80.


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.

Two Harbors Investment Corp 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 0.00 0.90 0.95 0.00 0.00

Two Harbors Investment Corp Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 0.00 0.00 0.00 0.00 0.00

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, Two Harbors Investment Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=0.01/244.955*244.955
=0.010

Current CPI (Jun. 2017) = 244.955.

Two Harbors Investment Corp Quarterly Data

per share eps CPI Adj_EPS
200709 0.000 208.490 0.000
200712 0.060 210.036 0.070
200803 0.050 213.528 0.057
200806 0.020 218.815 0.022
200809 0.020 218.783 0.022
200812 0.000 210.228 0.000
200903 -0.010 212.709 -0.012
200906 -0.050 215.693 -0.057
200909 -0.040 215.969 -0.045
200912 -0.290 215.949 -0.329
201003 0.400 217.631 0.450
201006 0.180 217.965 0.202
201009 0.380 218.439 0.426
201012 0.670 219.179 0.749
201103 0.490 223.467 0.537
201106 -0.010 225.722 -0.011
201109 0.420 226.889 0.453
201112 0.390 225.672 0.423
201203 0.280 229.392 0.299
201206 0.110 229.478 0.117
201209 0.100 231.407 0.106
201212 0.740 229.601 0.789
201303 0.470 232.773 0.495
201306 1.060 233.504 1.112
201309 -0.530 234.149 -0.554
201312 0.670 233.049 0.704
201403 -0.080 236.293 -0.083
201406 0.110 238.343 0.113
201409 0.530 238.031 0.545
201412 -0.100 234.812 -0.104
201503 0.260 236.119 0.270
201506 0.600 238.638 0.616
201509 -0.090 237.945 -0.093
201512 0.580 236.525 0.601
201603 -0.250 238.132 -0.257
201606 -0.050 241.018 -0.051
201609 0.340 241.428 0.345
201612 0.980 241.432 0.994
201703 0.210 243.801 0.211
201706 0.010 244.955 0.010

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.

Two Harbors Investment Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=10.17/0.00
=

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

During the past 10 years, the highest Shiller P/E Ratio of Two Harbors Investment Corp was 12.52. The lowest was 0.00. And the median was 10.80.


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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