GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » LPL Financial Holdings Inc (FRA:7LI) » Definitions » E10

LPL Financial Holdings (FRA:7LI) E10 : €7.33 (As of Dec. 2024)


View and export this data going back to 2011. Start your Free Trial

What is LPL Financial Holdings 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.

LPL Financial Holdings's adjusted earnings per share data for the three months ended in Dec. 2024 was €3.428. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €7.33 for the trailing ten years ended in Dec. 2024.

During the past 12 months, LPL Financial Holdings's average E10 Growth Rate was 21.70% per year. During the past 3 years, the average E10 Growth Rate was 25.90% per year. During the past 5 years, the average E10 Growth Rate was 25.10% 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 LPL Financial Holdings was 32.40% per year. The lowest was 23.40% per year. And the median was 25.90% per year.

As of today (2025-03-16), LPL Financial Holdings's current stock price is €292.00. LPL Financial Holdings's E10 for the quarter that ended in Dec. 2024 was €7.33. LPL Financial Holdings's Shiller PE Ratio of today is 39.84.

During the past 13 years, the highest Shiller PE Ratio of LPL Financial Holdings was 58.54. The lowest was 16.84. And the median was 39.04.


LPL Financial Holdings E10 Historical Data

The historical data trend for LPL Financial Holdings'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.

LPL Financial Holdings E10 Chart

LPL Financial Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.58 3.34 4.59 5.61 7.33

LPL Financial Holdings Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 5.61 6.12 6.42 6.44 7.33

Competitive Comparison of LPL Financial Holdings's E10

For the Capital Markets subindustry, LPL Financial Holdings'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.


LPL Financial Holdings's Shiller PE Ratio Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where LPL Financial Holdings's Shiller PE Ratio falls into.



LPL Financial Holdings 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, LPL Financial Holdings's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=3.428/133.1571*133.1571
=3.428

Current CPI (Dec. 2024) = 133.1571.

LPL Financial Holdings Quarterly Data

per share eps CPI Adj_EPS
201503 0.480 99.621 0.642
201506 0.463 100.684 0.612
201509 0.383 100.392 0.508
201512 0.257 99.792 0.343
201603 0.503 100.470 0.667
201606 0.472 101.688 0.618
201609 0.517 101.861 0.676
201612 0.436 101.863 0.570
201703 0.486 102.862 0.629
201706 0.659 103.349 0.849
201709 0.529 104.136 0.676
201712 0.583 104.011 0.746
201803 0.819 105.290 1.036
201806 1.113 106.317 1.394
201809 1.020 106.507 1.275
201812 1.195 105.998 1.501
201903 1.584 107.251 1.967
201906 1.513 108.070 1.864
201909 1.426 108.329 1.753
201912 1.395 108.420 1.713
202003 1.738 108.902 2.125
202006 1.128 108.767 1.381
202009 1.095 109.815 1.328
202012 1.134 109.897 1.374
202103 1.336 111.754 1.592
202106 1.212 114.631 1.408
202109 1.071 115.734 1.232
202112 1.177 117.630 1.332
202203 1.489 121.301 1.635
202206 1.864 125.017 1.985
202209 2.889 125.227 3.072
202212 3.710 125.222 3.945
202303 3.960 127.348 4.141
202306 3.369 128.729 3.485
202309 2.727 129.860 2.796
202312 2.613 129.419 2.688
202403 3.524 131.776 3.561
202406 3.001 132.554 3.015
202409 3.054 133.029 3.057
202412 3.428 133.157 3.428

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


LPL Financial Holdings  (FRA:7LI) 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.

LPL Financial Holdings's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=292.00/7.33
=39.84

* 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.

During the past 13 years, the highest Shiller P/E Ratio of LPL Financial Holdings was 58.54. The lowest was 16.84. And the median was 39.04.


Be Aware

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


LPL Financial Holdings E10 Related Terms

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


LPL Financial Holdings Business Description

Traded in Other Exchanges
Address
4707 Executive Drive, San Diego, CA, USA, 92121
LPL Financial Holdings is an independent broker/dealer that provides a platform of proprietary technology, brokerage, and investment advisory services to financial advisors and institutions. As of the end of September 2024, the company had over 23,000 advisors on its platform managing $1.6 trillion of client assets. The company doesn't have material operations outside of the United States.

LPL Financial Holdings Headlines

No Headlines