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BlackRock Inc  (NYSE:BLK) E10: $15.14 (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.

BlackRock Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $5.780. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $15.14 for the trailing ten years ended in Sep. 2017.

As of today, BlackRock Inc's current stock price is $478.94. BlackRock Inc's E10 for the quarter that ended in Sep. 2017 was $15.14. BlackRock Inc's Shiller PE Ratio of today is 31.63.

During the past 13 years, the highest Shiller PE Ratio of BlackRock Inc was 62.16. The lowest was 24.67. And the median was 32.64.


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.

BlackRock Inc 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 7.22 8.74 10.38 12.02 13.70

BlackRock Inc 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 13.38 13.70 14.19 14.65 15.14

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, BlackRock Inc'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)
=5.78/246.819*246.819
=5.780

Current CPI (Sep. 2017) = 246.819.

BlackRock Inc Quarterly Data

per share eps CPI Adj_EPS
200712 2.250 210.036 2.644
200803 1.770 213.528 2.046
200806 2.000 218.815 2.256
200809 1.590 218.783 1.794
200812 0.390 210.228 0.458
200903 0.620 212.709 0.719
200906 1.590 215.693 1.819
200909 2.270 215.969 2.594
200912 1.610 215.949 1.840
201003 2.170 217.631 2.461
201006 2.210 217.965 2.503
201009 2.830 218.439 3.198
201012 3.340 219.179 3.761
201103 2.890 223.467 3.192
201106 3.210 225.722 3.510
201109 3.230 226.889 3.514
201112 3.040 225.672 3.325
201203 3.140 229.392 3.379
201206 3.080 229.478 3.313
201209 3.650 231.407 3.893
201212 3.920 229.601 4.214
201303 3.620 232.773 3.838
201306 4.190 233.504 4.429
201309 4.210 234.149 4.438
201312 4.850 233.049 5.137
201403 4.400 236.293 4.596
201406 4.720 238.343 4.888
201409 5.370 238.031 5.568
201412 4.770 234.812 5.014
201503 4.840 236.119 5.059
201506 4.840 238.638 5.006
201509 5.000 237.945 5.186
201512 5.110 236.525 5.332
201603 3.920 238.132 4.063
201606 4.730 241.018 4.844
201609 5.260 241.428 5.377
201612 5.120 241.432 5.234
201703 5.230 243.801 5.295
201706 5.220 244.955 5.260
201709 5.780 246.819 5.780

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.

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

Shiller PE Ratio=Share Price/E10
=478.94/15.14
=31.63

* 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 BlackRock Inc was 62.16. The lowest was 24.67. And the median was 32.64.


Be Aware

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


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