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Ingersoll Rand (Ingersoll Rand) E10 : $0.38 (As of Dec. 2023)


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What is Ingersoll Rand E10?

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.

Ingersoll Rand's adjusted earnings per share data for the fiscal year that ended in Dec. 2023 was $1.900. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.38 for the trailing ten years ended in Dec. 2023.

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.

As of today (2024-04-28), Ingersoll Rand's current stock price is $ 93.50. Ingersoll Rand's E10 for the fiscal year that ended in Dec. 2023 was $0.38. Ingersoll Rand's Shiller PE Ratio of today is 246.05.

During the past 10 years, the highest Shiller PE Ratio of Ingersoll Rand was 249.87. The lowest was 196.84. And the median was 237.82.


Ingersoll Rand E10 Historical Data

The historical data trend for Ingersoll Rand's E10 can be seen below:

* 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.

* Premium members only.

Ingersoll Rand E10 Chart

Ingersoll Rand Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 0.38

Ingersoll Rand Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
E10 Get a 7-Day Free Trial 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 - - - - 0.38

Competitive Comparison of Ingersoll Rand's E10

For the Specialty Industrial Machinery subindustry, Ingersoll Rand'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.


Ingersoll Rand's Shiller PE Ratio Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Ingersoll Rand's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Ingersoll Rand's Shiller PE Ratio falls into.



Ingersoll Rand 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.

For example, Ingersoll Rand's adjusted earnings per share data for the fiscal year that ended in Dec. 2023 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=1.9/129.4194*129.4194
=1.900

Current CPI (Dec. 2023) = 129.4194.

Ingersoll Rand Annual Data

per_share_eps CPI Adj_EPS
201412 -0.712 99.070 -0.930
201512 -1.851 99.792 -2.401
201612 -0.193 101.863 -0.245
201712 0.100 104.011 0.124
201812 1.290 105.998 1.575
201912 0.760 108.420 0.907
202012 -0.090 109.897 -0.106
202112 1.340 117.630 1.474
202212 1.470 125.222 1.519
202312 1.900 129.419 1.900

Add all the adjusted EPS together and divide 10 will get our e10.


Ingersoll Rand  (NYSE:IR) 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.

Ingersoll Rand's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=93.50/0.38
=246.05

* 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 10 years, the highest Shiller P/E Ratio of Ingersoll Rand was 249.87. The lowest was 196.84. And the median was 237.82.


Be Aware

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


Ingersoll Rand E10 Related Terms

Thank you for viewing the detailed overview of Ingersoll Rand's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Ingersoll Rand (Ingersoll Rand) Business Description

Traded in Other Exchanges
Address
525 Harbour Place Drive, Suite 600, Davidson, NC, USA, 28036
Ingersoll Rand was formed through the merger of Gardner Denver and Ingersoll Rand's industrial segment. The firm's portfolio consists of two business lines: industrial technologies and services and precision and science technologies. Ingersoll Rand serves a variety of end markets, including industrial, medical, and energy. Its broad portfolio of products includes compression, blower and vacuum, and fluid management. Ingersoll Rand generated roughly $5.9 billion in revenue in 2022.
Executives
Andrew R Schiesl officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Joanna Sohovich director 123 MAIN STREET, BRISTOL CT 06010
Julie Schertell director 3460 PRESTON RIDGE ROAD, SUITE 600, ALPHARETTA GA 30005
Santiago Arias Duval officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Vikram Kini officer: Senior Vice President and CFO C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Matthew J Emmerich officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Vicente Reynal director, officer: Chief Executive Officer C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Kathleen M. Keene officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Gary E Gillespie officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Michael J Scheske officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Jennifer Hartsock director C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Viseras Enrique Minarro officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Nicholas J Kendall-jones officer: See Remarks C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Michael Stubblefield director C/O AVANTOR, INC., 100 MATSONFORD ROAD, RADNOR PA 19087
Mark P Stevenson director 850 LINCOLN CENTRE DRIVE, FOSTER CITY CA 94404