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.
Westinghouse Air Brake Technologies's adjusted earnings per share data for the three months ended in Mar. 2024 was $1.530. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.79 for the trailing ten years ended in Mar. 2024.
During the past 12 months, Westinghouse Air Brake Technologies's average E10 Growth Rate was -100.00% per year.
During the past 3 years, the average E10 Growth Rate was 7.20% per year.
During the past 5 years, the average E10 Growth Rate was 6.10% per year.
During the past 10 years, the average E10 Growth Rate was 8.70% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.
During the past 13 years, the highest 3-Year average E10 Growth Rate of Westinghouse Air Brake Technologies was 24.20% per year. The lowest was -1.30% per year. And the median was 9.40% per year.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Westinghouse Air Brake Technologies's E10
For the Railroads subindustry, Westinghouse Air Brake Technologies's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:
* 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. Note that "N/A" values will not show up in the chart.
Westinghouse Air Brake Technologies's Shiller PE Ratio Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Westinghouse Air Brake Technologies's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Westinghouse Air Brake Technologies's Shiller PE Ratio falls into.
Westinghouse Air Brake Technologies E10 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.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Westinghouse Air Brake Technologies Quarterly Data
per share eps
CPI
Adj_EPS
201406
0.910
100.560
1.171
201409
0.930
100.428
1.198
201412
0.950
99.070
1.241
201503
0.990
99.621
1.286
201506
1.040
100.684
1.337
201509
1.020
100.392
1.315
201512
1.050
99.792
1.362
201603
1.020
100.470
1.314
201606
1.000
101.688
1.273
201609
0.910
101.861
1.156
201612
0.420
101.863
0.534
201703
0.770
102.862
0.969
201706
0.750
103.349
0.939
201709
0.700
104.136
0.870
201712
0.510
104.011
0.635
201803
0.920
105.290
1.131
201806
0.870
106.317
1.059
201809
0.910
106.507
1.106
201812
0.360
105.998
0.440
201903
-0.040
107.251
-0.048
201906
0.540
108.070
0.647
201909
0.480
108.329
0.573
201912
0.710
108.420
0.848
202003
0.580
108.902
0.689
202006
0.460
108.767
0.547
202009
0.670
109.815
0.790
202012
0.460
109.897
0.542
202103
0.590
111.754
0.683
202106
0.660
114.631
0.745
202109
0.690
115.734
0.772
202112
1.020
117.630
1.122
202203
0.800
121.301
0.854
202206
0.910
125.017
0.942
202209
0.880
125.227
0.909
202212
0.860
125.222
0.889
202303
0.930
127.348
0.945
202306
1.060
128.729
1.066
202309
1.330
129.860
1.325
202312
1.200
129.419
1.200
202403
1.530
129.419
1.530
Add all the adjusted EPS together and divide 10 will get our e10.
Westinghouse Air Brake Technologies (NYSE:WAB) 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.
Westinghouse Air Brake Technologies's Shiller P/E Ratio of today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
During the past 13 years, the highest Shiller P/E Ratio of Westinghouse Air Brake Technologies was 54.77. The lowest was 13.86. And the median was 30.02.
Be Aware
Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.
Westinghouse Air Brake Technologies E10 Related Terms
Thank you for viewing the detailed overview of Westinghouse Air Brake Technologies's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.
Westinghouse Air Brake Technologies (Westinghouse Air Brake Technologies) Business Description
Westinghouse Air Brake Technologies Corp is a provider of value-added, technology-based products and services for the rail industry. It provides its products and services through two main business segments, Freight and Transit. The company generates maximum revenue from the Freight segment.
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