Switch to:
Danaher Corp  (NYSE:DHR) E10: $3.38 (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.

Danaher Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.810. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.38 for the trailing ten years ended in Sep. 2017.

As of today, Danaher Corp's current stock price is $94.02. Danaher Corp's E10 for the quarter that ended in Sep. 2017 was $3.38. Danaher Corp's Shiller PE Ratio of today is 27.82.

During the past 13 years, the highest Shiller PE Ratio of Danaher Corp was 34.19. The lowest was 15.07. And the median was 22.80.


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.

Danaher Corp 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 2.16 2.47 2.69 3.02 3.24

Danaher Corp 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 3.19 3.24 3.30 3.35 3.38

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, Danaher Corp'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)
=0.81/246.819*246.819
=0.810

Current CPI (Sep. 2017) = 246.819.

Danaher Corp Quarterly Data

per share eps CPI Adj_EPS
200712 0.485 210.036 0.570
200803 0.415 213.528 0.480
200806 0.545 218.815 0.615
200809 0.555 218.783 0.626
200812 0.460 210.228 0.540
200903 0.360 212.709 0.418
200906 0.440 215.693 0.503
200909 0.530 215.969 0.606
200912 0.400 215.949 0.457
201003 0.450 217.631 0.510
201006 0.550 217.965 0.623
201009 0.950 218.439 1.073
201012 0.690 219.179 0.777
201103 0.630 223.467 0.696
201106 0.940 225.722 1.028
201109 0.740 226.889 0.805
201112 0.810 225.672 0.886
201203 0.860 229.392 0.925
201206 0.840 229.478 0.903
201209 0.770 231.407 0.821
201212 0.890 229.601 0.957
201303 0.980 232.773 1.039
201306 0.870 233.504 0.920
201309 0.840 234.149 0.885
201312 1.110 233.049 1.176
201403 0.810 236.293 0.846
201406 0.950 238.343 0.984
201409 0.950 238.031 0.985
201412 0.920 234.812 0.967
201503 0.790 236.119 0.826
201506 0.970 238.638 1.003
201509 2.010 237.945 2.085
201512 0.990 236.525 1.033
201603 1.090 238.132 1.130
201606 0.940 241.018 0.963
201609 0.560 241.428 0.573
201612 1.060 241.432 1.084
201703 0.720 243.801 0.729
201706 0.790 244.955 0.796
201709 0.810 246.819 0.810

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.

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

Shiller PE Ratio=Share Price/E10
=94.02/3.38
=27.82

* 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 Danaher Corp was 34.19. The lowest was 15.07. And the median was 22.80.


Be Aware

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


Related Terms


Headlines

From the Internet

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK