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Verisk Analytics Inc  (NAS:VRSK) E10: $0.00 (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.

Verisk Analytics Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.720. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.00 for the trailing ten years ended in Sep. 2017.

As of today, Verisk Analytics Inc's current stock price is $93.58. Verisk Analytics Inc's E10 for the quarter that ended in Sep. 2017 was $0.00. Verisk Analytics Inc's Shiller PE Ratio of today is .

During the past 10 years, the highest Shiller PE Ratio of Verisk Analytics Inc was 44.59. The lowest was 35.37. And the median was 38.92.


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.

Verisk Analytics 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 0.00 1.51 1.70 0.00 0.00

Verisk Analytics 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 0.00 0.00 0.00 0.00 0.00

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, Verisk Analytics 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)
=0.72/246.819*246.819
=0.720

Current CPI (Sep. 2017) = 246.819.

Verisk Analytics Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.000 210.036 0.000
200803 0.000 213.528 0.000
200806 0.000 218.815 0.000
200809 0.220 218.783 0.248
200812 0.200 210.228 0.235
200903 0.250 212.709 0.290
200906 0.260 215.693 0.298
200909 0.230 215.969 0.263
200912 -0.050 215.949 -0.057
201003 0.290 217.631 0.329
201006 0.310 217.965 0.351
201009 0.340 218.439 0.384
201012 0.360 219.179 0.405
201103 0.370 223.467 0.409
201106 0.380 225.722 0.416
201109 0.410 226.889 0.446
201112 0.470 225.672 0.514
201203 0.440 229.392 0.473
201206 0.430 229.478 0.462
201209 0.480 231.407 0.512
201212 0.580 229.601 0.623
201303 0.470 232.773 0.498
201306 0.490 233.504 0.518
201309 0.560 234.149 0.590
201312 0.510 233.049 0.540
201403 0.680 236.293 0.710
201406 0.520 238.343 0.538
201409 0.580 238.031 0.601
201412 0.590 234.812 0.620
201503 0.610 236.119 0.638
201506 0.970 238.638 1.003
201509 0.770 237.945 0.799
201512 0.650 236.525 0.678
201603 0.540 238.132 0.560
201606 1.530 241.018 1.567
201609 0.740 241.428 0.757
201612 0.640 241.432 0.654
201703 0.640 243.801 0.648
201706 0.720 244.955 0.725
201709 0.720 246.819 0.720

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.

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

Shiller PE Ratio=Share Price/E10
=93.58/0.00
=

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

During the past 10 years, the highest Shiller P/E Ratio of Verisk Analytics Inc was 44.59. The lowest was 35.37. And the median was 38.92.


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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