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The Wendy's Co  (NAS:WEN) E10: $-0.42 (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.

The Wendy's Co's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.060. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.42 for the trailing ten years ended in Sep. 2017.

As of today, The Wendy's Co's current stock price is $16.80. The Wendy's Co's E10 for the quarter that ended in Sep. 2017 was $-0.42. The Wendy's Co's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of The Wendy's Co was 18.64. The lowest was 0.00. And the median was 9.52.


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 Wendy's Co 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 -0.66 -0.65 -0.64 -0.51 -0.45

The Wendy's Co 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 -0.46 -0.45 -0.45 -0.41 -0.42

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 Wendy's Co'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)
=0.06/246.819*246.819
=0.060

Current CPI (Sep. 2017) = 246.819.

The Wendy's Co Quarterly Data

per share eps CPI Adj_EPS
200712 0.530 210.036 0.623
200803 -1.460 213.528 -1.688
200806 -0.140 218.815 -0.158
200809 -0.420 218.783 -0.474
200812 -3.350 210.228 -3.933
200903 -0.020 212.709 -0.023
200906 0.030 215.693 0.034
200909 0.030 215.969 0.034
200912 -0.030 215.949 -0.034
201003 -0.010 217.631 -0.011
201006 0.025 217.965 0.028
201009 0.000 218.439 0.000
201012 -0.020 219.179 -0.023
201103 -0.003 223.467 -0.003
201106 0.027 225.722 0.030
201109 -0.010 226.889 -0.011
201112 0.010 225.672 0.011
201203 0.030 229.392 0.032
201206 -0.010 229.478 -0.011
201209 -0.070 231.407 -0.075
201212 0.070 229.601 0.075
201303 0.010 232.773 0.011
201306 0.030 233.504 0.032
201309 0.000 234.149 0.000
201312 0.080 233.049 0.085
201403 0.120 236.293 0.125
201406 0.080 238.343 0.083
201409 0.060 238.031 0.062
201412 0.060 234.812 0.063
201503 0.070 236.119 0.073
201506 0.110 238.638 0.114
201509 0.030 237.945 0.031
201512 0.270 236.525 0.282
201603 0.090 238.132 0.093
201606 0.100 241.018 0.102
201609 0.180 241.428 0.184
201612 0.110 241.432 0.112
201703 0.090 243.801 0.091
201706 -0.010 244.955 -0.010
201709 0.060 246.819 0.060

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 Wendy's Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=16.80/-0.42
=

* 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 Wendy's Co was 18.64. The lowest was 0.00. And the median was 9.52.


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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