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Fomento Economico Mexicano SAB de CV  (NYSE:FMX) E10: $3.41 (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.

Fomento Economico Mexicano SAB de CV's adjusted earnings per share data for the three months ended in Sep. 2017 was $5.086. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.41 for the trailing ten years ended in Sep. 2017.

As of today, Fomento Economico Mexicano SAB de CV's current stock price is $86.47. Fomento Economico Mexicano SAB de CV's E10 for the quarter that ended in Sep. 2017 was $3.41. Fomento Economico Mexicano SAB de CV's Shiller PE Ratio of today is 25.36.

During the past 13 years, the highest Shiller PE Ratio of Fomento Economico Mexicano SAB de CV was 51.54. The lowest was 18.71. And the median was 31.98.


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.

Fomento Economico Mexicano SAB de CV 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 2.55 3.21 2.91 2.62 2.42

Fomento Economico Mexicano SAB de CV 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 2.57 2.42 2.73 2.89 3.41

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, Fomento Economico Mexicano SAB de CV'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)
=5.08594823477/246.819*246.819
=5.086

Current CPI (Sep. 2017) = 246.819.

Fomento Economico Mexicano SAB de CV Quarterly Data

per share eps CPI Adj_EPS
200712 1.167 210.036 1.371
200803 0.336 213.528 0.389
200806 0.676 218.815 0.762
200809 0.529 218.783 0.597
200812 0.010 210.228 0.012
200903 0.149 212.709 0.173
200906 0.525 215.693 0.600
200909 0.525 215.969 0.600
200912 0.640 215.949 0.731
201003 0.442 217.631 0.501
201006 6.459 217.965 7.314
201009 0.860 218.439 0.972
201012 0.173 219.179 0.195
201103 0.508 223.467 0.561
201106 0.673 225.722 0.736
201109 0.992 226.889 1.080
201112 0.800 225.672 0.875
201203 0.508 229.392 0.547
201206 0.782 229.478 0.842
201209 1.439 231.407 1.535
201212 0.556 229.601 0.598
201303 4.800 232.773 5.090
201306 0.769 233.504 0.812
201309 0.959 234.149 1.010
201312 0.727 233.049 0.770
201403 0.489 236.293 0.511
201406 0.649 238.343 0.672
201409 1.015 238.031 1.052
201412 0.858 234.812 0.902
201503 0.575 236.119 0.601
201506 0.699 238.638 0.723
201509 0.826 237.945 0.856
201512 0.605 236.525 0.632
201603 0.475 238.132 0.493
201606 0.730 241.018 0.748
201609 0.972 241.428 0.993
201612 0.587 241.432 0.600
201703 0.477 243.801 0.483
201706 0.718 244.955 0.723
201709 5.086 246.819 5.086

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.

Fomento Economico Mexicano SAB de CV's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=86.47/3.41
=25.36

* 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 Fomento Economico Mexicano SAB de CV was 51.54. The lowest was 18.71. And the median was 31.98.


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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