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American International Group (American International Group) E10 : $2.75 (As of Dec. 2023)


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What is American International Group 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.

American International Group's adjusted earnings per share data for the three months ended in Dec. 2023 was $0.120. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.75 for the trailing ten years ended in Dec. 2023.

During the past 12 months, American International Group's average E10 Growth Rate was -6.80% per year. During the past 3 years, the average E10 Growth Rate was 14.80% 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 American International Group was 121.90% per year. The lowest was -50.10% per year. And the median was 11.60% per year.

As of today (2024-04-27), American International Group's current stock price is $74.53. American International Group's E10 for the quarter that ended in Dec. 2023 was $2.75. American International Group's Shiller PE Ratio of today is 27.10.

During the past 13 years, the highest Shiller PE Ratio of American International Group was 242.40. The lowest was 7.41. And the median was 22.33.


American International Group E10 Historical Data

The historical data trend for American International Group'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.

American International Group E10 Chart

American International Group 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 0.27 1.82 1.79 2.95 2.75

American International Group 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 2.95 2.81 2.81 2.92 2.75

Competitive Comparison of American International Group's E10

For the Insurance - Diversified subindustry, American International Group'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.


American International Group's Shiller PE Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, American International Group's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where American International Group's Shiller PE Ratio falls into.



American International Group 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, American International Group's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.12/129.4194*129.4194
=0.120

Current CPI (Dec. 2023) = 129.4194.

American International Group Quarterly Data

per share eps CPI Adj_EPS
201403 1.090 99.695 1.415
201406 2.100 100.560 2.703
201409 1.520 100.428 1.959
201412 0.490 99.070 0.640
201503 1.780 99.621 2.312
201506 1.320 100.684 1.697
201509 -0.180 100.392 -0.232
201512 -1.360 99.792 -1.764
201603 -0.160 100.470 -0.206
201606 1.680 101.688 2.138
201609 0.420 101.861 0.534
201612 -2.750 101.863 -3.494
201703 1.180 102.862 1.485
201706 1.190 103.349 1.490
201709 -1.910 104.136 -2.374
201712 -7.150 104.011 -8.897
201803 1.010 105.290 1.241
201806 1.020 106.317 1.242
201809 -1.410 106.507 -1.713
201812 -0.690 105.998 -0.842
201903 0.750 107.251 0.905
201906 1.240 108.070 1.485
201909 0.720 108.329 0.860
201912 1.030 108.420 1.229
202003 1.980 108.902 2.353
202006 -9.150 108.767 -10.887
202009 0.320 109.815 0.377
202012 -0.080 109.897 -0.094
202103 4.410 111.754 5.107
202106 0.110 114.631 0.124
202109 1.920 115.734 2.147
202112 5.500 117.630 6.051
202203 5.040 121.301 5.377
202206 3.430 125.017 3.551
202209 3.550 125.227 3.669
202212 0.860 125.222 0.889
202303 0.030 127.348 0.030
202306 2.030 128.729 2.041
202309 2.810 129.860 2.800
202312 0.120 129.419 0.120

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


American International Group  (NYSE:AIG) 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.

American International Group's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=74.53/2.75
=27.10

* 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 American International Group was 242.40. The lowest was 7.41. And the median was 22.33.


Be Aware

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


American International Group E10 Related Terms

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


American International Group (American International Group) Business Description

Address
1271 Avenue of the Americas, New York, NY, USA, 10020
American International Group is one of the largest insurance and financial services firms in the world and has a global footprint. It operates through a wide range of subsidiaries that provide property, casualty, and life insurance. The company recently spun off its life insurance operations (Corebridge), but still retains a majority stake.
Executives
Edward Lee Dandridge officer: EVP, Chief Marketing & Comms C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, MC 5003-1001, CHICAGO IL 60606-1596
Kathleen Carbone officer: VP & Chief Accounting Officer 1271 AVE OF THE AMERICAS, NEW YORK NY 10020-1304
Vanessa Ames Wittman director C/O MARSH & MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Diana M Murphy director C/O LANDSTAR SYSTEM INC, 13410 SUTTON PARK DR S, JACKSONVILLE FL 32224
Paola Bergamaschi director 1271 AVE OF THE AMERICAS, NEW YORK NY 10020-1304
Luciana Fato officer: EVP and General Counsel AMERICAN INTERNATIONAL GROUP, INC., 1271 AVE OF THE AMERICAS, NEW YORK NY 10020-1304
Thomas Allen Bolt officer: EVP and Chief Risk Officer C/O AMERICAN INTERNATIONAL GROUP, INC., 1271 AVE OF THE AMERICAS, NEW YORK NY 10020-1304
John G Rice director GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210
John P Repko officer: EVP and Chief Info. Officer AMERICAN INTERNATIONAL GROUP, INC., 1271 AVE OF THE AMERICAS, NEW YORK NY 10020-1304
Hunter Constance officer: EVP, Head of Strategy & ESG 1271 AVE OF THE AMERICAS, NEW YORK NY 10020-1304
Glazer Rose Marie E. officer: EVP, CHRO & Corp Secretary 1271 AVE OF THE AMERICAS, NEW YORK NY 10020-1304
Kevin T. Hogan officer: EVP - Life & Retirement 180 MAIDEN LANE, NEW YORK NY 10038
Sabra R. Purtill officer: EVP and Chief Risk Officer 1271 AVE OF THE AMERICAS, NEW YORK NY 10020-1304
Claude E. Wade officer: EVP, Hd of Ops & Chief Dig Off 1271 AVE OF THE AMERICAS, NEW YORK NY 10020-1304
Lisa Buckingham officer: EVP Ent Desgn and L&R Sep 150 N RADNOR CHESTER ROAD, RADNOR PA 19087