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.

* Premium members only.

The Valspar Corp Annual Data

Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 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 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 2.40 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


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK