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Mahindra & Mahindra Financial Services (BOM:532720) E10 : ₹15.14 (As of Sep. 2024)


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What is Mahindra & Mahindra Financial Services 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.

Mahindra & Mahindra Financial Services's adjusted earnings per share data for the three months ended in Sep. 2024 was ₹3.140. 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. 2024.

During the past 12 months, Mahindra & Mahindra Financial Services's average E10 Growth Rate was 4.80% per year. During the past 3 years, the average E10 Growth Rate was -3.10% 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 Mahindra & Mahindra Financial Services was -3.10% per year. The lowest was -3.10% per year. And the median was -3.10% per year.

As of today (2024-12-14), Mahindra & Mahindra Financial Services's current stock price is ₹274.65. Mahindra & Mahindra Financial Services's E10 for the quarter that ended in Sep. 2024 was ₹15.14. Mahindra & Mahindra Financial Services's Shiller PE Ratio of today is 18.14.

During the past 13 years, the highest Shiller PE Ratio of Mahindra & Mahindra Financial Services was 23.32. The lowest was 4.99. And the median was 14.49.


Mahindra & Mahindra Financial Services E10 Historical Data

The historical data trend for Mahindra & Mahindra Financial Services'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.

Mahindra & Mahindra Financial Services E10 Chart

Mahindra & Mahindra Financial Services 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 15.62 16.08 13.56 14.20 14.62

Mahindra & Mahindra Financial Services 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 14.36 14.67 14.62 14.99 15.14

Competitive Comparison of Mahindra & Mahindra Financial Services's E10

For the Credit Services subindustry, Mahindra & Mahindra Financial Services'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.


Mahindra & Mahindra Financial Services's Shiller PE Ratio Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Mahindra & Mahindra Financial Services's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Mahindra & Mahindra Financial Services's Shiller PE Ratio falls into.



Mahindra & Mahindra Financial Services 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, Mahindra & Mahindra Financial Services'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)
=3.14/157.8822*157.8822
=3.140

Current CPI (Sep. 2024) = 157.8822.

Mahindra & Mahindra Financial Services Quarterly Data

per share eps CPI Adj_EPS
201412 1.683 96.780 2.746
201503 3.939 97.163 6.401
201506 1.152 99.841 1.822
201509 1.683 101.753 2.611
201512 1.036 102.901 1.590
201603 4.408 102.518 6.788
201606 1.152 105.961 1.716
201609 1.225 105.961 1.825
201612 0.128 105.196 0.192
201703 2.988 105.196 4.485
201706 0.628 107.109 0.926
201709 1.085 109.021 1.571
201712 3.878 109.404 5.596
201803 6.829 109.786 9.821
201806 3.128 111.317 4.436
201809 4.219 115.142 5.785
201812 3.945 115.142 5.409
201903 6.798 118.202 9.080
201906 1.061 120.880 1.386
201909 4.240 123.175 5.435
201912 5.240 126.235 6.554
202003 2.610 124.705 3.304
202006 4.800 127.000 5.967
202009 3.300 130.118 4.004
202012 -1.840 130.889 -2.219
202103 1.760 131.771 2.109
202106 -12.770 134.084 -15.036
202109 8.910 135.847 10.355
202112 8.000 138.161 9.142
202203 5.050 138.822 5.743
202206 1.940 142.347 2.152
202209 3.980 144.661 4.344
202212 5.350 145.763 5.795
202303 5.510 146.865 5.923
202306 2.900 150.280 3.047
202309 2.270 151.492 2.366
202312 5.040 152.924 5.203
202403 5.430 153.035 5.602
202406 4.020 155.789 4.074
202409 3.140 157.882 3.140

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


Mahindra & Mahindra Financial Services  (BOM:532720) 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.

Mahindra & Mahindra Financial Services's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=274.65/15.14
=18.14

* 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 Mahindra & Mahindra Financial Services was 23.32. The lowest was 4.99. And the median was 14.49.


Be Aware

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


Mahindra & Mahindra Financial Services E10 Related Terms

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


Mahindra & Mahindra Financial Services Business Description

Traded in Other Exchanges
Address
Dr. G M. Bhosale Marg, 4th Floor, Mahindra Towers, A Wing, P.K. Kurne Chowk, Worli, Mumbai, MH, IND, 400 018
Mahindra & Mahindra Financial Services Ltd is a nonbanking financial company engaged in financing new and pre-owned auto, utility vehicles, tractors, passenger cars and commercial vehicles through its pan India branch network. The company has a diversified lending portfolio across retail, small and medium enterprises and commercial customers with a presence in rural and semi-urban India. The company has two segments : Financing Activities, that includes financing and leasing of automobiles, tractors, commercial vehicles, SMEs and housing finance.; and Other reconciling items which consists insurance broking, asset management services and trusteeship services. It derives maximum revenue from Financing Activities.

Mahindra & Mahindra Financial Services Headlines

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