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Nestle Pakistan (KAR:NESTLE) E10 : ₨303.33 (As of Mar. 2024)


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What is Nestle Pakistan 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.

Nestle Pakistan's adjusted earnings per share data for the three months ended in Mar. 2024 was ₨111.750. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₨303.33 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Nestle Pakistan's average E10 Growth Rate was 7.90% per year. During the past 3 years, the average E10 Growth Rate was 9.10% 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 Nestle Pakistan was 9.10% per year. The lowest was 9.10% per year. And the median was 9.10% per year.

As of today (2024-05-15), Nestle Pakistan's current stock price is ₨7306.58. Nestle Pakistan's E10 for the quarter that ended in Mar. 2024 was ₨303.33. Nestle Pakistan's Shiller PE Ratio of today is 24.09.

During the past 13 years, the highest Shiller PE Ratio of Nestle Pakistan was 29.61. The lowest was 17.85. And the median was 23.73.


Nestle Pakistan E10 Historical Data

The historical data trend for Nestle Pakistan'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.

Nestle Pakistan E10 Chart

Nestle Pakistan 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 - 229.86 237.34 269.49 298.11

Nestle Pakistan Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 281.14 291.31 301.63 298.11 303.33

Competitive Comparison of Nestle Pakistan's E10

For the Packaged Foods subindustry, Nestle Pakistan'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.


Nestle Pakistan's Shiller PE Ratio Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Pakistan's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Nestle Pakistan's Shiller PE Ratio falls into.



Nestle Pakistan 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, Nestle Pakistan's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=111.75/129.4194*129.4194
=111.750

Current CPI (Mar. 2024) = 129.4194.

Nestle Pakistan Quarterly Data

per share eps CPI Adj_EPS
201406 56.460 100.560 72.664
201409 38.940 100.428 50.181
201412 33.620 99.070 43.919
201503 81.010 99.621 105.241
201506 55.820 100.684 71.751
201509 32.570 100.392 41.988
201512 23.770 99.792 30.827
201603 75.890 100.470 97.757
201606 65.690 101.688 83.604
201609 74.880 101.861 95.139
201612 44.760 101.863 56.869
201703 90.420 102.862 113.765
201706 84.530 103.349 105.853
201709 74.930 104.136 93.123
201712 72.980 104.011 90.808
201803 74.570 105.290 91.660
201806 64.570 106.317 78.601
201809 51.140 106.507 62.142
201812 65.780 105.998 80.315
201903 50.150 107.251 60.516
201906 48.460 108.070 58.034
201909 21.880 108.329 26.140
201912 41.680 108.420 49.753
202003 42.760 108.902 50.816
202006 42.710 108.767 50.820
202009 51.150 109.815 60.281
202012 59.290 109.897 69.823
202103 70.770 111.754 81.957
202106 56.760 114.631 64.082
202109 72.980 115.734 81.610
202112 81.050 117.630 89.174
202203 98.180 121.301 104.751
202206 71.510 125.017 74.028
202209 81.390 125.227 84.115
202212 80.780 125.222 83.488
202303 124.850 127.348 126.881
202306 117.400 128.729 118.030
202309 105.960 129.860 105.601
202312 15.470 129.419 15.470
202403 111.750 129.419 111.750

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


Nestle Pakistan  (KAR:NESTLE) 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.

Nestle Pakistan's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=7306.58/303.33
=24.09

* 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 Nestle Pakistan was 29.61. The lowest was 17.85. And the median was 23.73.


Be Aware

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


Nestle Pakistan E10 Related Terms

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


Nestle Pakistan (KAR:NESTLE) Business Description

Traded in Other Exchanges
N/A
Address
Packages Mall, PO Amer Sidhu, Shahrah-e-Roomi, Lahore, PAK, 54760
Nestle Pakistan Ltd is a food and beverage company. The principal activity of the company is the manufacturing, processing, and sale of food products including imported products. The company's operating segments: Dairy and Nutrition Products, Powdered and Liquid Beverages, and Others. It generates maximum revenue from the Dairy and Nutrition Products segment. The company has operational footprints across Pakistan, Afghanistan, and other foreign countries. Its key products are ambient dairy, confectionery, coffee, beverages, infant nutrition, and drinking water. The majority of its revenue is derived from Pakistan.

Nestle Pakistan (KAR:NESTLE) Headlines

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