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Emerson Electric Co  (NYSE:EMR) E10: $3.10 (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.

Emerson Electric Co's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.780. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.10 for the trailing ten years ended in Sep. 2017.

As of today, Emerson Electric Co's current stock price is $73.45. Emerson Electric Co's E10 for the quarter that ended in Sep. 2017 was $3.10. Emerson Electric Co's Shiller PE Ratio of today is 23.69.

During the past 13 years, the highest Shiller PE Ratio of Emerson Electric Co was 33.15. The lowest was 13.32. And the median was 21.21.


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.

Emerson Electric Co Annual Data

Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.74 2.88 3.07 3.11 3.10

Emerson Electric Co 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 3.11 3.10 3.10 3.08 3.10

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, Emerson Electric Co'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)
=0.78/246.819*246.819
=0.780

Current CPI (Sep. 2017) = 246.819.

Emerson Electric Co Quarterly Data

per share eps CPI Adj_EPS
200712 0.710 210.036 0.834
200803 0.690 213.528 0.798
200806 0.780 218.815 0.880
200809 0.880 218.783 0.993
200812 0.600 210.228 0.704
200903 0.490 212.709 0.569
200906 0.510 215.693 0.584
200909 0.670 215.969 0.766
200912 0.560 215.949 0.640
201003 0.530 217.631 0.601
201006 0.770 217.965 0.872
201009 0.980 218.439 1.107
201012 0.630 219.179 0.709
201103 0.730 223.467 0.806
201106 0.900 225.722 0.984
201109 1.010 226.889 1.099
201112 0.500 225.672 0.547
201203 0.740 229.392 0.796
201206 1.040 229.478 1.119
201209 0.390 231.407 0.416
201212 0.620 229.601 0.666
201303 0.770 232.773 0.816
201306 0.270 233.504 0.285
201309 1.100 234.149 1.160
201312 0.650 233.049 0.688
201403 0.770 236.293 0.804
201406 1.030 238.343 1.067
201409 0.580 238.031 0.601
201412 0.750 234.812 0.788
201503 1.420 236.119 1.484
201506 0.840 238.638 0.869
201509 0.980 237.945 1.017
201512 0.530 236.525 0.553
201603 0.570 238.132 0.591
201606 0.740 241.018 0.758
201609 0.680 241.428 0.695
201612 0.480 241.432 0.491
201703 0.450 243.801 0.456
201706 0.640 244.955 0.645
201709 0.780 246.819 0.780

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.

Emerson Electric Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=73.45/3.10
=23.69

* 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 Emerson Electric Co was 33.15. The lowest was 13.32. And the median was 21.21.


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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