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Brickworks (ASX:BKW) E10 : A$1.89 (As of Jan. 2024)


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What is Brickworks 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.

Brickworks's adjusted earnings per share data for the fiscal year that ended in Jul. 2023 was A$2.584. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is A$1.89 for the trailing ten years ended in Jul. 2023.

During the past 3 years, the average E10 Growth Rate was 25.80% per year. During the past 5 years, the average E10 Growth Rate was 15.50% per year. During the past 10 years, the average E10 Growth Rate was 5.20% 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 Brickworks was 38.90% per year. The lowest was -4.30% per year. And the median was 12.00% per year.

As of today (2024-04-30), Brickworks's current stock price is A$ 26.82. Brickworks's E10 for the fiscal year that ended in Jul. 2023 was A$1.89. Brickworks's Shiller PE Ratio of today is 14.19.

During the past 13 years, the highest Shiller PE Ratio of Brickworks was 26.28. The lowest was 11.96. And the median was 15.35.


Brickworks E10 Historical Data

The historical data trend for Brickworks'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.

Brickworks E10 Chart

Brickworks Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.86 0.95 1.02 1.62 1.89

Brickworks Semi-Annual Data
Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24
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 - 1.62 - 1.89 -

Competitive Comparison of Brickworks's E10

For the Building Materials subindustry, Brickworks'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.


Brickworks's Shiller PE Ratio Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Brickworks's Shiller PE Ratio distribution charts can be found below:

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



Brickworks 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, Brickworks's adjusted earnings per share data for the fiscal year that ended in Jul. 2023 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Jul. 2023 (Change)*Current CPI (Jul. 2023)
=2.584/125.6559*125.6559
=2.584

Current CPI (Jul. 2023) = 125.6559.

Brickworks Annual Data

per_share_eps CPI Adj_EPS
201407 0.694 98.816 0.883
201507 0.526 100.302 0.659
201607 0.526 101.602 0.651
201707 1.249 103.460 1.517
201807 1.175 105.410 1.401
201907 1.033 107.174 1.211
202007 1.992 107.917 2.319
202107 1.579 111.168 1.785
202207 5.612 119.248 5.914
202307 2.584 125.656 2.584

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


Brickworks  (ASX:BKW) 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.

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

Shiller PE Ratio=Share Price/E10
=26.82/1.89
=14.19

* 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 Brickworks was 26.28. The lowest was 11.96. And the median was 15.35.


Be Aware

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


Brickworks E10 Related Terms

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


Brickworks (ASX:BKW) Business Description

Traded in Other Exchanges
Address
738 - 780 Wallgrove Road, Horsley Park, Sydney, NSW, AUS, 2175
Brickworks is a conglomerate consisting of brickmaking operations, industrial property management, and a cross-shareholding in investment firm, Washington H. Soul Pattinson, or Soul Patts (ASX: SOL). Brickworks' operating business manufactures brick products for the Australian and North American markets. However, most earnings are from the property and investment segments. The property segment principally redevelops warehouses on industrial land, with joint venture partner narrow-moat Goodman Group. The investment segment represents a cross-shareholding in Soul Patts, an investment firm with a portfolio encompassing diversified investments, including large holdings in no-moat New Hope coal miner and narrow-moat TPG Telecom.

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