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Wausau Paper Corp  (NYSE:WPP) E10: $-0.18 (As of Sep. 2015)

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.

Wausau Paper Corp's adjusted earnings per share data for the three months ended in Sep. 2015 was $0.030. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.18 for the trailing ten years ended in Sep. 2015.

As of today, Wausau Paper Corp's current stock price is $10.24. Wausau Paper Corp's E10 for the quarter that ended in Sep. 2015 was $-0.18. Wausau Paper Corp's Shiller PE Ratio of today is .


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.

Wausau Paper Corp Annual Data

Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.23 0.17 0.12 -0.12 -0.20

Wausau Paper Corp Quarterly Data

Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 -0.19 -0.20 -0.21 -0.20 -0.18

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, Wausau Paper Corp's adjusted earnings per share data for the three months ended in Sep. 2015 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=0.03/237.945*237.945
=0.030

Current CPI (Sep. 2015) = 237.945.

Wausau Paper Corp Quarterly Data

per share eps CPI Adj_EPS
200512 -0.190 196.800 -0.230
200603 -0.030 199.800 -0.036
200606 0.070 202.900 0.082
200609 0.140 202.900 0.164
200612 0.142 201.800 0.167
200703 0.290 205.352 0.336
200706 0.090 208.352 0.103
200709 0.120 208.490 0.137
200712 -0.552 210.036 -0.625
200803 -0.140 213.528 -0.156
200806 -0.200 218.815 -0.217
200809 0.050 218.783 0.054
200812 -0.036 210.228 -0.041
200903 -0.030 212.709 -0.034
200906 -0.040 215.693 -0.044
200909 0.300 215.969 0.331
200912 0.186 215.949 0.205
201003 0.060 217.631 0.066
201006 0.110 217.965 0.120
201009 0.270 218.439 0.294
201012 0.308 219.179 0.334
201103 -0.030 223.467 -0.032
201106 0.070 225.722 0.074
201109 0.100 226.889 0.105
201112 -0.584 225.672 -0.616
201203 0.200 229.392 0.207
201206 -0.030 229.478 -0.031
201209 -0.110 231.407 -0.113
201212 -0.050 229.601 -0.052
201303 -0.600 232.773 -0.613
201306 -1.110 233.504 -1.131
201309 -0.060 234.149 -0.061
201312 -0.202 233.049 -0.206
201403 -0.100 236.293 -0.101
201406 -0.080 238.343 -0.080
201409 -0.190 238.031 -0.190
201412 -0.006 234.812 -0.006
201503 0.010 236.119 0.010
201506 0.040 238.638 0.040
201509 0.030 237.945 0.030

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.

Wausau Paper Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=10.24/-0.18
=

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


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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