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United Rentals Inc  (NYSE:URI) E10: $1.52 (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.

United Rentals Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $2.330. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.52 for the trailing ten years ended in Sep. 2017.

As of today, United Rentals Inc's current stock price is $183.67. United Rentals Inc's E10 for the quarter that ended in Sep. 2017 was $1.52. United Rentals Inc's Shiller PE Ratio of today is 120.84.

During the past 13 years, the highest Shiller PE Ratio of United Rentals Inc was 515.26. The lowest was 47.60. And the median was 95.26.


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 Rentals 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 -1.11 -0.30 0.35 0.75 1.18

United Rentals 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 1.06 1.18 1.29 1.39 1.52

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 Rentals 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)
=2.33/246.819*246.819
=2.330

Current CPI (Sep. 2017) = 246.819.

United Rentals Inc Quarterly Data

per share eps CPI Adj_EPS
200712 1.380 210.036 1.622
200803 0.340 213.528 0.393
200806 -2.330 218.815 -2.628
200809 0.980 218.783 1.106
200812 -11.500 210.228 -13.502
200903 -0.320 212.709 -0.371
200906 -0.280 215.693 -0.320
200909 0.000 215.969 0.000
200912 -0.420 215.949 -0.480
201003 -0.670 217.631 -0.760
201006 0.180 217.965 0.204
201009 0.330 218.439 0.373
201012 -0.350 219.179 -0.394
201103 -0.340 223.467 -0.376
201106 0.370 225.722 0.405
201109 0.910 226.889 0.990
201112 0.390 225.672 0.427
201203 0.170 229.392 0.183
201206 -0.630 229.478 -0.678
201209 0.700 231.407 0.747
201212 0.420 229.601 0.451
201303 0.190 232.773 0.201
201306 0.780 233.504 0.824
201309 1.350 234.149 1.423
201312 1.310 233.049 1.387
201403 0.560 236.293 0.585
201406 0.900 238.343 0.932
201409 1.840 238.031 1.908
201412 1.860 234.812 1.955
201503 1.160 236.119 1.213
201506 0.880 238.638 0.910
201509 2.250 237.945 2.334
201512 1.800 236.525 1.878
201603 1.010 238.132 1.047
201606 1.520 241.018 1.557
201609 2.160 241.428 2.208
201612 1.790 241.432 1.830
201703 1.270 243.801 1.286
201706 1.650 244.955 1.663
201709 2.330 246.819 2.330

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

Shiller PE Ratio=Share Price/E10
=183.67/1.52
=120.84

* 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 Rentals Inc was 515.26. The lowest was 47.60. And the median was 95.26.


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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