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Westwood Holdings Group Inc  (NYSE:WHG) E10: $2.42 (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.

Westwood Holdings Group Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.490. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.42 for the trailing ten years ended in Sep. 2017.

As of today, Westwood Holdings Group Inc's current stock price is $65.72. Westwood Holdings Group Inc's E10 for the quarter that ended in Sep. 2017 was $2.42. Westwood Holdings Group Inc's Shiller PE Ratio of today is 27.16.

During the past 13 years, the highest Shiller PE Ratio of Westwood Holdings Group Inc was 41.01. The lowest was 0.91. And the median was 28.90.


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.

Westwood Holdings Group 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 1.34 1.49 1.75 2.02 2.24

Westwood Holdings Group 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 2.17 2.24 2.31 2.38 2.42

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, Westwood Holdings Group 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)
=0.49/246.819*246.819
=0.490

Current CPI (Sep. 2017) = 246.819.

Westwood Holdings Group Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.520 210.036 0.611
200803 0.310 213.528 0.358
200806 0.270 218.815 0.305
200809 0.270 218.783 0.305
200812 0.790 210.228 0.928
200903 0.190 212.709 0.220
200906 0.230 215.693 0.263
200909 0.320 215.969 0.366
200912 0.390 215.949 0.446
201003 0.400 217.631 0.454
201006 0.340 217.965 0.385
201009 0.380 218.439 0.429
201012 0.470 219.179 0.529
201103 0.500 223.467 0.552
201106 0.520 225.722 0.569
201109 0.460 226.889 0.500
201112 0.570 225.672 0.623
201203 0.520 229.392 0.560
201206 0.300 229.478 0.323
201209 0.340 231.407 0.363
201212 0.490 229.601 0.527
201303 0.380 232.773 0.403
201306 0.650 233.504 0.687
201309 0.570 234.149 0.601
201312 0.750 233.049 0.794
201403 0.720 236.293 0.752
201406 1.120 238.343 1.160
201409 0.920 238.031 0.954
201412 0.720 234.812 0.757
201503 0.710 236.119 0.742
201506 1.230 238.638 1.272
201509 0.870 237.945 0.902
201512 0.550 236.525 0.574
201603 0.440 238.132 0.456
201606 0.690 241.018 0.707
201609 0.720 241.428 0.736
201612 0.930 241.432 0.951
201703 0.730 243.801 0.739
201706 0.830 244.955 0.836
201709 0.490 246.819 0.490

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.

Westwood Holdings Group Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=65.72/2.42
=27.16

* 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 Westwood Holdings Group Inc was 41.01. The lowest was 0.91. And the median was 28.90.


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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