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Western Digital Corp  (NAS:WDC) E10: $3.99 (As of Mar. 2019)

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.

Western Digital Corp's adjusted earnings per share data for the three months ended in Mar. 2019 was $-1.990. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.99 for the trailing ten years ended in Mar. 2019.

As of today, Western Digital Corp's current stock price is $43.45. Western Digital Corp's E10 for the quarter that ended in Mar. 2019 was $3.99. Western Digital Corp's Shiller PE Ratio of today is 10.89.

During the past 13 years, the highest Shiller PE Ratio of Western Digital Corp was 1946.50. The lowest was 7.64. And the median was 18.02.


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.

Western Digital Corp Annual Data

Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.02 4.53 4.49 4.41 4.29

Western Digital Corp Quarterly Data

Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
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 4.11 4.29 4.35 4.13 3.99

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.


Western Digital Corp Distribution

* The bar in red indicates where Western Digital Corp's E10 falls into.



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, Western Digital Corp's adjusted earnings per share data for the three months ended in Mar. 2019 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2019 (Change)*Current CPI (Mar. 2019)
=-1.99/254.202*254.202
=-1.990

Current CPI (Mar. 2019) = 254.202.

Western Digital Corp Quarterly Data

per share eps CPI Adj_EPS
200906 0.860 215.693 1.014
200909 1.250 215.969 1.471
200912 1.850 215.949 2.178
201003 1.710 217.631 1.997
201006 1.110 217.965 1.295
201009 0.840 218.439 0.978
201012 0.960 219.179 1.113
201103 0.620 223.467 0.705
201106 0.670 225.722 0.755
201109 1.010 226.889 1.132
201112 0.610 225.672 0.687
201203 1.960 229.392 2.172
201206 2.970 229.478 3.290
201209 2.060 231.407 2.263
201212 1.360 229.601 1.506
201303 1.600 232.773 1.747
201306 -1.120 233.504 -1.219
201309 2.050 234.149 2.226
201312 1.770 233.049 1.931
201403 1.550 236.293 1.667
201406 1.320 238.343 1.408
201409 1.760 238.031 1.880
201412 1.840 234.812 1.992
201503 1.630 236.119 1.755
201506 0.940 238.638 1.001
201509 1.210 237.945 1.293
201512 1.070 236.525 1.150
201603 0.320 238.132 0.342
201606 -1.340 241.018 -1.413
201609 -1.280 241.428 -1.348
201612 0.800 241.432 0.842
201703 0.830 243.801 0.865
201706 0.930 244.955 0.965
201709 2.230 246.819 2.297
201712 -2.780 246.524 -2.867
201803 0.200 249.554 0.204
201806 2.460 251.989 2.482
201809 1.710 252.439 1.722
201812 -1.680 251.233 -1.700
201903 -1.990 254.202 -1.990

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.

Western Digital Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=43.45/3.99
=10.89

* 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 Western Digital Corp was 1946.50. The lowest was 7.64. And the median was 18.02.


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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