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Mettler-Toledo International Inc (NYSE:MTD)
E10
$7.83 (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.

Mettler-Toledo International Inc's adjusted earnings per share data for the three months ended in Sep. 2015 was $3.160. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $7.83 for the trailing ten years ended in Sep. 2015.

As of today, Mettler-Toledo International Inc's current stock price is $311.68. Mettler-Toledo International Inc's E10 for the quarter that ended in Sep. 2015 was $7.83. Mettler-Toledo International Inc's Shiller P/E Ratio of today is 39.81.

During the past 13 years, the highest Shiller P/E Ratio of Mettler-Toledo International Inc was 45.90. The lowest was 14.93. And the median was 36.50.


Definition

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, Mettler-Toledo International Inc's adjusted earnings per share data for the three months ended in Sep. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=3.16/237.945*237.945
=3.160

Current CPI (Sep. 2015) = 237.945.

Mettler-Toledo International Inc Quarterly Data

201306201309201312201403201406201409201412201503201506201509
per share eps 2.2402.4303.6231.9302.4902.8904.1722.1902.7303.160
CPI 233.504234.149233.049236.293238.343238.031234.812236.119238.638237.945
Adj_EPS 2.2832.4693.6991.9432.4862.8894.2282.2072.7223.160
201012201103201106201109201112201203201206201209201212201303
per share eps 2.4061.4101.8202.0902.9111.6201.9302.2803.3461.690
CPI 219.179223.467225.722226.889225.672229.392229.478231.407229.601232.773
Adj_EPS 2.6121.5011.9192.1923.0691.6802.0012.3443.4681.728
200806200809200812200903200906200909200912201003201006201009
per share eps 1.3801.5201.8421.0000.8101.2102.0091.1001.4901.820
CPI 218.815218.783210.228212.709215.693215.969215.949217.631217.965218.439
Adj_EPS 1.5011.6532.0851.1190.8941.3332.2141.2031.6271.983
200512200603200606200609200612200703200706200709200712200803
per share eps 1.0420.5700.8401.1601.3110.7801.0701.1601.7161.060
CPI 196.800199.800202.900202.900201.800205.352208.352208.490210.036213.528
Adj_EPS 1.2600.6790.9851.3601.5460.9041.2221.3241.9441.181

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 P/E 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.

Mettler-Toledo International Inc's Shiller P/E Ratio of today is calculated as

Shiller P/E Ratio=Share Price/E10
=311.68/7.83
=39.81

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

During the past 13 years, the highest Shiller P/E Ratio of Mettler-Toledo International Inc was 45.90. The lowest was 14.93. And the median was 36.50.


Be Aware

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


Related Terms

Shiller P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Mettler-Toledo International Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
e10 0.000.002.583.023.464.004.725.446.227.13

Mettler-Toledo International Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
e10 5.846.016.226.496.736.887.137.367.667.83
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