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Viacom Inc  (NAS:VIAB) E10: $3.05 (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.

Viacom Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.680. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.05 for the trailing ten years ended in Sep. 2017.

As of today, Viacom Inc's current stock price is $27.26. Viacom Inc's E10 for the quarter that ended in Sep. 2017 was $3.05. Viacom Inc's Shiller PE Ratio of today is 8.94.

During the past 13 years, the highest Shiller PE Ratio of Viacom Inc was 25.08. The lowest was 7.06. And the median was 12.86.


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.

Viacom Inc Annual Data

Dec07 Dec08 Dec09 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 3.49 3.46 3.33 3.05

Viacom 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 3.33 3.43 3.62 3.46 3.05

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, Viacom 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)
=1.68/246.819*246.819
=1.680

Current CPI (Sep. 2017) = 246.819.

Viacom Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.850 210.036 0.999
200803 0.420 213.528 0.485
200806 0.650 218.815 0.733
200809 0.650 218.783 0.733
200812 0.290 210.228 0.340
200903 0.290 212.709 0.337
200906 0.460 215.693 0.526
200909 0.760 215.969 0.869
200912 1.140 215.949 1.303
201003 0.400 217.631 0.454
201006 0.690 217.965 0.781
201009 0.310 218.439 0.350
201012 1.000 219.179 1.126
201103 0.630 223.467 0.696
201106 0.970 225.722 1.061
201109 0.990 226.889 1.077
201112 0.380 225.672 0.416
201203 1.070 229.392 1.151
201206 1.010 229.478 1.086
201209 1.240 231.407 1.323
201212 0.920 229.601 0.989
201303 0.960 232.773 1.018
201306 1.310 233.504 1.385
201309 1.660 234.149 1.750
201312 1.200 233.049 1.271
201403 1.130 236.293 1.180
201406 1.400 238.343 1.450
201409 1.700 238.031 1.763
201412 1.200 234.812 1.261
201503 -0.130 236.119 -0.136
201506 1.470 238.638 1.520
201509 2.190 237.945 2.272
201512 1.130 236.525 1.179
201603 0.760 238.132 0.788
201606 1.090 241.018 1.116
201609 0.630 241.428 0.644
201612 1.000 241.432 1.022
201703 0.300 243.801 0.304
201706 1.700 244.955 1.713
201709 1.680 246.819 1.680

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.

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

Shiller PE Ratio=Share Price/E10
=27.26/3.05
=8.94

* 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 Viacom Inc was 25.08. The lowest was 7.06. And the median was 12.86.


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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