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FMC Corp  (NYSE:FMC) E10: $2.17 (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.

FMC Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.410. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.17 for the trailing ten years ended in Sep. 2017.

As of today, FMC Corp's current stock price is $93.86. FMC Corp's E10 for the quarter that ended in Sep. 2017 was $2.17. FMC Corp's Shiller PE Ratio of today is 43.25.

During the past 13 years, the highest Shiller PE Ratio of FMC Corp was 66.89. The lowest was 15.25. And the median was 38.60.


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.

FMC 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 1.49 1.70 1.81 2.09 2.19

FMC 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 2.19 2.19 2.09 2.14 2.17

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, FMC 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)
=0.41/246.819*246.819
=0.410

Current CPI (Sep. 2017) = 246.819.

FMC Corp Quarterly Data

per share eps CPI Adj_EPS
200712 0.265 210.036 0.311
200803 0.615 213.528 0.711
200806 0.550 218.815 0.620
200809 0.525 218.783 0.592
200812 0.315 210.228 0.370
200903 0.470 212.709 0.545
200906 0.470 215.693 0.538
200909 0.190 215.969 0.217
200912 0.425 215.949 0.486
201003 0.530 217.631 0.601
201006 0.450 217.965 0.510
201009 0.565 218.439 0.638
201012 -0.365 219.179 -0.411
201103 0.650 223.467 0.718
201106 0.740 225.722 0.809
201109 0.610 226.889 0.664
201112 0.550 225.672 0.602
201203 0.850 229.392 0.915
201206 0.760 229.478 0.817
201209 0.650 231.407 0.693
201212 0.740 229.601 0.795
201303 0.940 232.773 0.997
201306 0.860 233.504 0.909
201309 0.130 234.149 0.137
201312 0.200 233.049 0.212
201403 0.490 236.293 0.512
201406 0.810 238.343 0.839
201409 0.420 238.031 0.436
201412 0.570 234.812 0.599
201503 -0.350 236.119 -0.366
201506 5.520 238.638 5.709
201509 -0.020 237.945 -0.021
201512 -1.520 236.525 -1.586
201603 0.360 238.132 0.373
201606 0.490 241.018 0.502
201609 0.590 241.428 0.603
201612 0.120 241.432 0.123
201703 -0.930 243.801 -0.942
201706 0.560 244.955 0.564
201709 0.410 246.819 0.410

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.

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

Shiller PE Ratio=Share Price/E10
=93.86/2.17
=43.25

* 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 FMC Corp was 66.89. The lowest was 15.25. And the median was 38.60.


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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