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United Parcel Service Inc  (NYSE:UPS) E10: $3.36 (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.

United Parcel Service Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $1.580. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.36 for the trailing ten years ended in Jun. 2017.

As of today, United Parcel Service Inc's current stock price is $119.76. United Parcel Service Inc's E10 for the quarter that ended in Jun. 2017 was $3.36. United Parcel Service Inc's Shiller PE Ratio of today is 35.64.

During the past 13 years, the highest Shiller PE Ratio of United Parcel Service Inc was 37.14. The lowest was 13.72. And the median was 28.24.


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.

United Parcel Service 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 2.93 3.09 3.08 3.23 3.22

United Parcel Service Inc 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 3.34 3.37 3.22 3.29 3.36

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, United Parcel Service Inc'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)
=1.58/244.955*244.955
=1.580

Current CPI (Jun. 2017) = 244.955.

United Parcel Service Inc Quarterly Data

per share eps CPI Adj_EPS
200709 1.020 208.490 1.198
200712 -2.490 210.036 -2.904
200803 0.870 213.528 0.998
200806 0.850 218.815 0.952
200809 0.960 218.783 1.075
200812 0.270 210.228 0.315
200903 0.400 212.709 0.461
200906 0.440 215.693 0.500
200909 0.550 215.969 0.624
200912 0.750 215.949 0.851
201003 0.530 217.631 0.597
201006 0.840 217.965 0.944
201009 0.990 218.439 1.110
201012 0.970 219.179 1.084
201103 0.910 223.467 0.998
201106 1.090 225.722 1.183
201109 1.090 226.889 1.177
201112 0.750 225.672 0.814
201203 1.000 229.392 1.068
201206 1.150 229.478 1.228
201209 0.480 231.407 0.508
201212 -1.820 229.601 -1.942
201303 1.080 232.773 1.137
201306 1.130 233.504 1.185
201309 1.160 234.149 1.214
201312 1.240 233.049 1.303
201403 0.980 236.293 1.016
201406 0.490 238.343 0.504
201409 1.320 238.031 1.358
201412 0.500 234.812 0.522
201503 1.120 236.119 1.162
201506 1.350 238.638 1.386
201509 1.390 237.945 1.431
201512 1.480 236.525 1.533
201603 1.270 238.132 1.306
201606 1.430 241.018 1.453
201609 1.440 241.428 1.461
201612 -0.260 241.432 -0.264
201703 1.320 243.801 1.326
201706 1.580 244.955 1.580

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.

United Parcel Service Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=119.76/3.36
=35.64

* 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 United Parcel Service Inc was 37.14. The lowest was 13.72. And the median was 28.24.


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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