Switch to:
The Valspar Corp  (NYSE:VAL) E10: \$2.71 (As of Apr. 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.

The Valspar Corp's adjusted earnings per share data for the three months ended in Apr. 2017 was \$0.930. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is \$2.71 for the trailing ten years ended in Apr. 2017.

As of today, The Valspar Corp's current stock price is \$112.99. The Valspar Corp's E10 for the quarter that ended in Apr. 2017 was \$2.71. The Valspar Corp's Shiller PE Ratio of today is 41.69.

During the past 13 years, the highest Shiller PE Ratio of The Valspar Corp was 45.44. The lowest was 11.14. And the median was 31.86.

Historical Data

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

The Valspar Corp Annual Data

 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 E10 1.54 1.74 1.98 2.32 2.58

The Valspar Corp Quarterly Data

 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 E10 2.40 2.51 2.58 2.63 2.71

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, The Valspar Corp's adjusted earnings per share data for the three months ended in Apr. 2017 was:

 Adj_EPS = Earnings per Share (Diluted) / CPI of Apr. 2017 (Change) * Current CPI (Apr. 2017) = 0.93 / 244.524 * 244.524 = 0.930

Current CPI (Apr. 2017) = 244.524.

The Valspar Corp Quarterly Data

 per share eps CPI Adj_EPS 200707 0.520 208.299 0.610 200710 0.450 208.936 0.527 200801 0.210 211.080 0.243 200804 0.380 214.823 0.433 200807 0.440 219.964 0.489 200810 0.350 216.573 0.395 200901 0.110 211.143 0.127 200904 0.280 213.240 0.321 200907 0.610 215.351 0.693 200910 0.490 216.177 0.554 201001 0.340 216.687 0.384 201004 0.610 218.009 0.684 201007 0.740 218.011 0.830 201010 0.510 218.711 0.570 201101 0.340 220.223 0.378 201104 0.580 224.906 0.631 201107 0.700 225.922 0.758 201110 -3.130 226.421 -3.380 201201 0.580 226.665 0.626 201204 0.800 230.085 0.850 201207 0.920 229.104 0.982 201210 0.790 231.317 0.835 201301 0.600 230.280 0.637 201304 0.840 232.531 0.883 201307 1.040 233.596 1.089 201310 0.720 233.546 0.754 201401 0.610 233.916 0.638 201404 0.990 237.072 1.021 201407 1.140 238.250 1.170 201410 1.270 237.433 1.308 201501 1.240 233.707 1.297 201504 1.090 236.599 1.127 201507 1.250 238.654 1.281 201510 1.270 237.838 1.306 201601 0.650 236.916 0.671 201604 0.990 239.261 1.012 201607 1.440 240.628 1.463 201610 1.280 241.729 1.295 201701 0.500 242.839 0.503 201704 0.930 244.524 0.930

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.

The Valspar Corp's Shiller P/E Ratio of today is calculated as

 Shiller PE Ratio = Share Price / E10 = 112.99 / 2.71 = 41.69

* 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 The Valspar Corp was 45.44. The lowest was 11.14. And the median was 31.86.

Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.

Related Terms