Switch to:
AGCO Corp  (NYSE:AGCO) E10: $3.99 (As of Sep. 2017)

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.

AGCO Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.760. 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 Sep. 2017.

As of today, AGCO Corp's current stock price is $66.66. AGCO Corp's E10 for the quarter that ended in Sep. 2017 was $3.99. AGCO Corp's Shiller PE Ratio of today is 16.71.

During the past 13 years, the highest Shiller PE Ratio of AGCO Corp was 134.31. The lowest was 12.39. And the median was 21.33.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

AGCO Corp Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.51 3.03 3.26 3.55 3.90

AGCO Corp Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 3.66 3.90 3.90 3.97 3.99

Competitive Comparison
* 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.


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.

For example, AGCO Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=0.76/246.819*246.819
=0.760

Current CPI (Sep. 2017) = 246.819.

AGCO Corp Quarterly Data

per share eps CPI Adj_EPS
200712 0.820 210.036 0.964
200803 0.590 213.528 0.682
200806 1.310 218.815 1.478
200809 1.010 218.783 1.139
200812 1.040 210.228 1.221
200903 0.360 212.709 0.418
200906 0.610 215.693 0.698
200909 0.120 215.969 0.137
200912 0.350 215.949 0.400
201003 0.100 217.631 0.113
201006 0.660 217.965 0.747
201009 0.650 218.439 0.734
201012 0.880 219.179 0.991
201103 0.810 223.467 0.895
201106 1.360 225.722 1.487
201109 0.870 226.889 0.946
201112 2.910 225.672 3.183
201203 1.210 229.392 1.302
201206 2.080 229.478 2.237
201209 0.960 231.407 1.024
201212 1.050 229.601 1.129
201303 1.190 232.773 1.262
201306 2.150 233.504 2.273
201309 1.270 234.149 1.339
201312 1.400 233.049 1.483
201403 1.030 236.293 1.076
201406 1.770 238.343 1.833
201409 0.690 238.031 0.715
201412 0.860 234.812 0.904
201503 0.340 236.119 0.355
201506 1.220 238.638 1.262
201509 0.770 237.945 0.799
201512 0.730 236.525 0.762
201603 0.090 238.132 0.093
201606 0.610 241.018 0.625
201609 0.500 241.428 0.511
201612 0.760 241.432 0.777
201703 -0.130 243.801 -0.132
201706 1.140 244.955 1.149
201709 0.760 246.819 0.760

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 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.

AGCO Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=66.66/3.99
=16.71

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

During the past 13 years, the highest Shiller P/E Ratio of AGCO Corp was 134.31. The lowest was 12.39. And the median was 21.33.


Be Aware

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


Related Terms


Headlines

From the Internet

Tracking Tweedy Browne Portfolio Q3 2017 Update

- Seekingalpha 2017-11-20 02:23:21

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK