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Vedanta (BOM:500295) E10 : ₹8.88 (As of Sep. 2024)


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What is Vedanta 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.

Vedanta's adjusted earnings per share data for the three months ended in Sep. 2024 was ₹11.180. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₹8.88 for the trailing ten years ended in Sep. 2024.

During the past 12 months, Vedanta's average E10 Growth Rate was 50.80% per year. During the past 3 years, the average E10 Growth Rate was -29.30% 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 Vedanta was -29.30% per year. The lowest was -29.30% per year. And the median was -29.30% per year.

As of today (2024-12-13), Vedanta's current stock price is ₹519.70. Vedanta's E10 for the quarter that ended in Sep. 2024 was ₹8.88. Vedanta's Shiller PE Ratio of today is 58.52.

During the past 13 years, the highest Shiller PE Ratio of Vedanta was 61.51. The lowest was 3.55. And the median was 35.96.


Vedanta E10 Historical Data

The historical data trend for Vedanta'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.

Vedanta E10 Chart

Vedanta Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 21.65 8.81 7.60 7.64

Vedanta Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 5.89 5.47 7.64 8.53 8.88

Competitive Comparison of Vedanta's E10

For the Other Industrial Metals & Mining subindustry, Vedanta'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.


Vedanta's Shiller PE Ratio Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Vedanta's Shiller PE Ratio distribution charts can be found below:

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



Vedanta 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, Vedanta's adjusted earnings per share data for the three months ended in Sep. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=11.18/157.8822*157.8822
=11.180

Current CPI (Sep. 2024) = 157.8822.

Vedanta Quarterly Data

per share eps CPI Adj_EPS
201412 5.350 96.780 8.728
201503 -64.850 97.163 -105.376
201506 2.920 99.841 4.618
201509 3.610 101.753 5.601
201512 0.060 102.901 0.092
201603 -37.710 102.518 -58.075
201606 2.540 105.961 3.785
201609 4.800 105.961 7.152
201612 6.290 105.196 9.440
201703 4.750 105.196 7.129
201706 4.040 107.109 5.955
201709 5.500 109.021 7.965
201712 5.520 109.404 7.966
201803 12.920 109.786 18.580
201806 4.120 111.317 5.843
201809 3.610 115.142 4.950
201812 4.230 115.142 5.800
201903 7.040 118.202 9.403
201906 3.630 120.880 4.741
201909 5.800 123.175 7.434
201912 6.310 126.235 7.892
202003 -33.820 124.705 -42.818
202006 2.770 127.000 3.444
202009 4.476 130.118 5.431
202012 8.860 130.889 10.687
202103 17.250 131.771 20.668
202106 11.310 134.084 13.317
202109 12.380 135.847 14.388
202112 11.170 138.161 12.764
202203 15.560 138.822 17.696
202206 11.840 142.347 13.132
202209 4.850 144.661 5.293
202212 6.600 145.763 7.149
202303 4.920 146.865 5.289
202306 7.060 150.280 7.417
202309 -4.800 151.492 -5.002
202312 5.380 152.924 5.554
202403 3.660 153.035 3.776
202406 9.640 155.789 9.770
202409 11.180 157.882 11.180

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


Vedanta  (BOM:500295) 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.

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

Shiller PE Ratio=Share Price/E10
=519.70/8.88
=58.52

* 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 Vedanta was 61.51. The lowest was 3.55. And the median was 35.96.


Be Aware

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


Vedanta E10 Related Terms

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


Vedanta Business Description

Traded in Other Exchanges
Address
Unit 103, Corporate Avenue, 1st Floor, C Wing, Atul Projects, Chakala, Andheri (East), Mumbai, MH, IND, 400093
Vedanta Ltd is a diversified natural resource company engaged in exploring, extracting and processing minerals and oil and gas. It focused on zinc, lead, silver, aluminium, copper, iron ore, oil and gas, and commercial power. The company has operations across India, South Africa, Namibia, Ireland, and Australia. The company has five reportable segments: oil and gas, aluminium, copper, iron ore and power. It derives the majority of revenue from the aluminium segment.

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