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Time Warner Inc  (NYSE:TWX) E10: $2.24 (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.

Time Warner Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.730. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.24 for the trailing ten years ended in Sep. 2017.

As of today, Time Warner Inc's current stock price is $88.72. Time Warner Inc's E10 for the quarter that ended in Sep. 2017 was $2.24. Time Warner Inc's Shiller PE Ratio of today is 39.61.

During the past 13 years, the highest Shiller PE Ratio of Time Warner Inc was 51.62. The lowest was 30.82. And the median was 41.73.


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.

Time Warner Inc 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 1.33 1.57 1.75 2.02 2.00

Time Warner 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 2.12 2.00 2.09 2.15 2.24

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, Time Warner 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)
=1.73/246.819*246.819
=1.730

Current CPI (Sep. 2017) = 246.819.

Time Warner Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.870 210.036 1.022
200803 0.640 213.528 0.740
200806 0.660 218.815 0.744
200809 0.890 218.783 1.004
200812 -13.430 210.228 -15.768
200903 0.550 212.709 0.638
200906 0.430 215.693 0.492
200909 0.550 215.969 0.629
200912 0.530 215.949 0.606
201003 0.620 217.631 0.703
201006 0.490 217.965 0.555
201009 0.460 218.439 0.520
201012 0.680 219.179 0.766
201103 0.590 223.467 0.652
201106 0.590 225.722 0.645
201109 0.780 226.889 0.849
201112 0.760 225.672 0.831
201203 0.590 229.392 0.635
201206 0.420 229.478 0.452
201209 0.840 231.407 0.896
201212 1.150 229.601 1.236
201303 0.790 232.773 0.838
201306 0.810 233.504 0.856
201309 1.260 234.149 1.328
201312 1.070 233.049 1.133
201403 1.420 236.293 1.483
201406 0.950 238.343 0.984
201409 1.110 238.031 1.151
201412 0.850 234.812 0.893
201503 1.150 236.119 1.202
201506 1.160 238.638 1.200
201509 1.260 237.945 1.307
201512 1.060 236.525 1.106
201603 1.510 238.132 1.565
201606 1.200 241.018 1.229
201609 1.860 241.428 1.902
201612 0.390 241.432 0.399
201703 1.800 243.801 1.822
201706 1.340 244.955 1.350
201709 1.730 246.819 1.730

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.

Time Warner Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=88.72/2.24
=39.61

* 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 Time Warner Inc was 51.62. The lowest was 30.82. And the median was 41.73.


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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