Switch to:
Weight Watchers International Inc  (NYSE:WTW) E10: $2.74 (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.

Weight Watchers International Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.650. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.74 for the trailing ten years ended in Sep. 2017.

As of today, Weight Watchers International Inc's current stock price is $45.18. Weight Watchers International Inc's E10 for the quarter that ended in Sep. 2017 was $2.74. Weight Watchers International Inc's Shiller PE Ratio of today is 16.49.

During the past 13 years, the highest Shiller PE Ratio of Weight Watchers International Inc was 41.79. The lowest was 1.35. And the median was 13.85.


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.

Weight Watchers International 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 2.72 2.97 2.96 2.84 2.75

Weight Watchers International 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 2.78 2.75 2.72 2.72 2.74

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, Weight Watchers International 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)
=0.65/246.819*246.819
=0.650

Current CPI (Sep. 2017) = 246.819.

Weight Watchers International Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.500 210.036 0.588
200803 0.720 213.528 0.832
200806 0.590 218.815 0.666
200809 0.670 218.783 0.756
200812 0.620 210.228 0.728
200903 0.610 212.709 0.708
200906 0.760 215.693 0.870
200909 0.680 215.969 0.777
200912 0.240 215.949 0.274
201003 0.580 217.631 0.658
201006 0.730 217.965 0.827
201009 0.590 218.439 0.667
201012 0.660 219.179 0.743
201103 1.000 223.467 1.104
201106 1.170 225.722 1.279
201109 1.090 226.889 1.186
201112 0.850 225.672 0.930
201203 0.740 229.392 0.796
201206 1.360 229.478 1.463
201209 1.200 231.407 1.280
201212 1.040 229.601 1.118
201303 0.870 232.773 0.922
201306 1.150 233.504 1.216
201309 1.070 234.149 1.128
201312 0.510 233.049 0.540
201403 0.380 236.293 0.397
201406 0.950 238.343 0.984
201409 0.670 238.031 0.695
201412 0.080 234.812 0.084
201503 -0.100 236.119 -0.105
201506 0.490 238.638 0.507
201509 0.380 237.945 0.394
201512 -0.220 236.525 -0.230
201603 -0.170 238.132 -0.176
201606 0.460 241.018 0.471
201609 0.530 241.428 0.542
201612 0.200 241.432 0.204
201703 0.160 243.801 0.162
201706 0.670 244.955 0.675
201709 0.650 246.819 0.650

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.

Weight Watchers International Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=45.18/2.74
=16.49

* 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 Weight Watchers International Inc was 41.79. The lowest was 1.35. And the median was 13.85.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Related Terms


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK