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Archer-Daniels Midland Co (NYSE:ADM) E10

: $3.99 (As of Dec. 2022)
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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.

Archer-Daniels Midland Co's adjusted earnings per share data for the three months ended in Dec. 2022 was $1.840. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.99 for the trailing ten years ended in Dec. 2022.

As of today (2023-03-24), Archer-Daniels Midland Co's current stock price is $76.65. Archer-Daniels Midland Co's E10 for the quarter that ended in Dec. 2022 was $3.99. Archer-Daniels Midland Co's Shiller PE Ratio of today is 19.21.

During the past 13 years, the highest Shiller PE Ratio of Archer-Daniels Midland Co was 27.85. The lowest was 10.15. And the median was 15.26.


Archer-Daniels Midland Co E10 Historical Data

The historical data trend for Archer-Daniels Midland Co'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.

Archer-Daniels Midland Co Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.83 2.86 2.85 3.27 3.99

Archer-Daniels Midland Co Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 3.27 3.48 3.75 3.90 3.99

Competitive Comparison

For the Farm Products subindustry, Archer-Daniels Midland Co's E10, along with its competitors' market caps and E10 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.

   

Archer-Daniels Midland Co E10 Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Archer-Daniels Midland Co's E10 distribution charts can be found below:

* The bar in red indicates where Archer-Daniels Midland Co's E10 falls in comparison to its industry or sector. The grey bar indicates the E10's extreme value range as defined by GuruFocus.



Archer-Daniels Midland Co 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, Archer-Daniels Midland Co's adjusted earnings per share data for the three months ended in Dec. 2022 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2022 (Change)*Current CPI (Dec. 2022)
=1.84/125.2218*125.2218
=1.840

Current CPI (Dec. 2022) = 125.2218.

Archer-Daniels Midland Co Quarterly Data

per share eps CPI Adj_EPS
201303 0.410 98.209 0.523
201306 0.340 98.518 0.432
201309 0.720 98.790 0.913
201312 0.560 98.326 0.713
201403 0.400 99.695 0.502
201406 0.810 100.560 1.009
201409 1.140 100.428 1.421
201412 1.080 99.070 1.365
201503 0.770 99.621 0.968
201506 0.620 100.684 0.771
201509 0.410 100.392 0.511
201512 1.190 99.792 1.493
201603 0.390 100.470 0.486
201606 0.480 101.688 0.591
201609 0.580 101.861 0.713
201612 0.730 101.863 0.897
201703 0.590 102.862 0.718
201706 0.480 103.349 0.582
201709 0.340 104.136 0.409
201712 1.390 104.011 1.673
201803 0.700 105.290 0.833
201806 1.000 106.317 1.178
201809 0.940 106.507 1.105
201812 0.550 105.998 0.650
201903 0.410 107.251 0.479
201906 0.420 108.070 0.487
201909 0.720 108.329 0.832
201912 0.900 108.420 1.039
202003 0.690 108.902 0.793
202006 0.840 108.767 0.967
202009 0.400 109.815 0.456
202012 1.220 109.897 1.390
202103 1.220 111.754 1.367
202106 1.260 114.631 1.376
202109 0.930 115.734 1.006
202112 1.380 117.630 1.469
202203 1.860 121.301 1.920
202206 2.180 125.017 2.184
202209 1.830 125.227 1.830
202212 1.840 125.222 1.840

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


Archer-Daniels Midland Co  (NYSE:ADM) 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.

Archer-Daniels Midland Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=76.65/3.99
=19.21

* 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 Archer-Daniels Midland Co was 27.85. The lowest was 10.15. And the median was 15.26.


Be Aware

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


Archer-Daniels Midland Co E10 Related Terms

Thank you for viewing the detailed overview of Archer-Daniels Midland Co's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Archer-Daniels Midland Co (NYSE:ADM) Business Description

Archer-Daniels Midland Co logo
Traded in Other Exchanges
Address
77 West Wacker Drive, Suite 4600, Chicago, IL, USA, 60601
Archer-Daniels Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. Additionally, the company owns an extensive network of logistical assets to store and transport crops around the globe. ADM also runs a nutrition business that focuses on both human and animal ingredients. The company is also a large producer of corn-based sweeteners, starches, and ethanol.
Executives
Collins James C. Jr. director 1007 MARKET STREET, D-9058, WILMINGTON DE 19898
Theodore Iii Colbert director C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, CHICAGO IL 60606-1596
Strader Fruit Molly L officer: Vice Pres., Corp. Controller 77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Jennifer L Weber officer: Senior Vice President 1000 LOWES BOULEVARD, MOORESVILLE NC 28117
Lei Zhang Schlitz director 5757 N. GREENBAY AVENUE, GLENDALE WI 53129
Michael S Burke director C/O AECOM TECHNOLOGY CORPORATION, 555 S. FLOWER STREET, SUITE 3700, LOS ANGELES CA 90071
Stefano Rettore officer: Senior Vice President 77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Suzan F. Harrison director 77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Debra A. Sandler director KEURIG DR PEPPER INC., 53 SOUTH AVE., BURLINGTON MA 01803
Vincent F Macciocchi officer: Senior Vice President 77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Christopher M Cuddy officer: President-Corn 77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Gregory A Morris officer: Senior Vice President 77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Francisco J Sanchez director 77 W. WACKER DR., SUITE 4600, CHICAGO IL 60601
Benjamin I Bard officer: Vice President 4666 FARIES PARKWAY, DECATUR IL 62526
D Cameron Findlay officer: Senior Vice President 77 W. WACKER DR., SUITE 2600, CHICAGO IL 60601

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