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ERJ (Embraer) E10 : $-0.24 (As of Sep. 2024)


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What is Embraer 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.

Embraer's adjusted earnings per share data for the three months ended in Sep. 2024 was $0.974. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.24 for the trailing ten years ended in Sep. 2024.

During the past 3 years, the average E10 Growth Rate was -89.80% 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 Embraer was 0.50% per year. The lowest was -89.80% per year. And the median was -6.50% per year.

As of today (2024-12-14), Embraer's current stock price is $36.51. Embraer's E10 for the quarter that ended in Sep. 2024 was $-0.24. Embraer's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Embraer was 64.46. The lowest was 11.78. And the median was 18.98.


Embraer E10 Historical Data

The historical data trend for Embraer'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.

Embraer E10 Chart

Embraer Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.57 -0.05 -0.11 -0.24 -0.34

Embraer 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 -0.30 -0.34 -0.37 -0.34 -0.24

Competitive Comparison of Embraer's E10

For the Aerospace & Defense subindustry, Embraer'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.


Embraer's Shiller PE Ratio Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Embraer's Shiller PE Ratio distribution charts can be found below:

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



Embraer 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, Embraer'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)
=0.974/162.3424*162.3424
=0.974

Current CPI (Sep. 2024) = 162.3424.

Embraer Quarterly Data

per share eps CPI Adj_EPS
201412 0.496 94.194 0.855
201503 -0.337 97.799 -0.559
201506 0.706 100.006 1.146
201509 -0.601 101.392 -0.962
201512 0.606 104.247 0.944
201603 0.567 106.979 0.860
201606 -0.544 108.851 -0.811
201609 -0.200 109.986 -0.295
201612 1.061 110.802 1.555
201703 0.289 111.869 0.419
201706 0.335 112.115 0.485
201709 0.565 112.777 0.813
201712 0.224 114.068 0.319
201803 -0.215 114.868 -0.304
201806 -0.717 117.038 -0.995
201809 -0.068 117.881 -0.094
201812 0.027 118.340 0.037
201903 -0.231 120.124 -0.312
201906 0.040 120.977 0.054
201909 -0.420 121.292 -0.562
201912 -1.140 123.436 -1.499
202003 -1.587 124.092 -2.076
202006 -1.713 123.557 -2.251
202009 -0.658 125.095 -0.854
202012 -0.018 129.012 -0.023
202103 -0.488 131.660 -0.602
202106 0.478 133.871 0.580
202109 -0.245 137.913 -0.288
202112 0.012 141.992 0.014
202203 -0.160 146.537 -0.177
202206 0.404 149.784 0.438
202209 -0.164 147.800 -0.180
202212 0.134 150.207 0.145
202303 -0.386 153.352 -0.409
202306 -0.102 154.519 -0.107
202309 0.332 155.464 0.347
202312 1.036 157.148 1.070
202403 0.156 159.372 0.159
202406 0.541 161.052 0.545
202409 0.974 162.342 0.974

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


Embraer  (NYSE:ERJ) 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.

During the past 13 years, the highest Shiller P/E Ratio of Embraer was 64.46. The lowest was 11.78. And the median was 18.98.


Be Aware

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


Embraer E10 Related Terms

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


Embraer Business Description

Address
Avenida Dra. Ruth Cardoso, 8501, 30th Floor, Pinheiros, SP, BRA, 05425-070
Embraer SA based in Sao Paulo, Brazil, manufacturer of jets. Its focus is to achieve customer satisfaction with and services addressing the commercial airline, executive jets, and defense and security markets. It has developed a customer-centric technology-driven portfolio of commercial aviation products and services that allows it to build long-term relationships with clients in the commercial aviation, executive jets, and defense and security markets. It operates through the following segments: Commercial Aviation; Defense and Security, Executive Aviation, Service and Support, and Other Segments. The company generates maximum revenue from the Commercial Aviation segment.

Embraer Headlines