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Universal Forest Products Inc  (NAS:UFPI) E10: $0.77 (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.

Universal Forest Products Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.547. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.77 for the trailing ten years ended in Sep. 2017.

As of today, Universal Forest Products Inc's current stock price is $37.34. Universal Forest Products Inc's E10 for the quarter that ended in Sep. 2017 was $0.77. Universal Forest Products Inc's Shiller PE Ratio of today is 48.49.

During the past 13 years, the highest Shiller PE Ratio of Universal Forest Products Inc was 56.40. The lowest was 6.79. And the median was 19.81.


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.

Universal Forest Products 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 0.66 0.65 0.63 0.63 0.67

Universal Forest Products 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 0.65 0.67 0.70 0.73 0.77

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, Universal Forest Products 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)
=0.547/246.819*246.819
=0.547

Current CPI (Sep. 2017) = 246.819.

Universal Forest Products Inc Quarterly Data

per share eps CPI Adj_EPS
200712 -0.193 210.036 -0.227
200803 -0.080 213.528 -0.092
200806 0.203 218.815 0.229
200809 -0.033 218.783 -0.037
200812 -0.013 210.228 -0.015
200903 -0.020 212.709 -0.023
200906 0.277 215.693 0.317
200909 0.170 215.969 0.194
200912 -0.013 215.949 -0.015
201003 0.017 217.631 0.019
201006 0.233 217.965 0.264
201009 0.043 218.439 0.049
201012 0.000 219.179 0.000
201103 -0.063 223.467 -0.070
201106 0.073 225.722 0.080
201109 0.097 226.889 0.106
201112 -0.030 225.672 -0.033
201203 0.070 229.392 0.075
201206 0.293 229.478 0.315
201209 0.070 231.407 0.075
201212 -0.033 229.601 -0.035
201303 0.087 232.773 0.092
201306 0.263 233.504 0.278
201309 0.237 234.149 0.250
201312 0.130 233.049 0.138
201403 0.120 236.293 0.125
201406 0.360 238.343 0.373
201409 0.320 238.031 0.332
201412 0.153 234.812 0.161
201503 0.170 236.119 0.178
201506 0.427 238.638 0.442
201509 0.420 237.945 0.436
201512 0.310 236.525 0.323
201603 0.317 238.132 0.329
201606 0.547 241.018 0.560
201609 0.453 241.428 0.463
201612 0.340 241.432 0.348
201703 0.343 243.801 0.347
201706 0.547 244.955 0.551
201709 0.547 246.819 0.547

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.

Universal Forest Products Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=37.34/0.77
=48.49

* 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 Universal Forest Products Inc was 56.40. The lowest was 6.79. And the median was 19.81.


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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