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Primerica (FRA:PI7) E10 : €10.12 (As of Dec. 2024)


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What is Primerica 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.

Primerica's adjusted earnings per share data for the three months ended in Dec. 2024 was €4.737. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €10.12 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Primerica's average E10 Growth Rate was 12.80% per year. During the past 3 years, the average E10 Growth Rate was 17.10% per year. During the past 5 years, the average E10 Growth Rate was 17.60% 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 Primerica was 19.40% per year. The lowest was 12.20% per year. And the median was 17.10% per year.

As of today (2025-03-18), Primerica's current stock price is €260.00. Primerica's E10 for the quarter that ended in Dec. 2024 was €10.12. Primerica's Shiller PE Ratio of today is 25.69.

During the past 13 years, the highest Shiller PE Ratio of Primerica was 30.77. The lowest was 12.78. And the median was 24.31.


Primerica E10 Historical Data

The historical data trend for Primerica'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.

Primerica E10 Chart

Primerica 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 4.47 5.85 7.39 8.58 10.12

Primerica 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 8.58 9.24 9.15 9.05 10.12

Competitive Comparison of Primerica's E10

For the Insurance - Life subindustry, Primerica'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.


Primerica's Shiller PE Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Primerica's Shiller PE Ratio distribution charts can be found below:

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



Primerica 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, Primerica'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)
=4.737/133.1571*133.1571
=4.737

Current CPI (Dec. 2024) = 133.1571.

Primerica Quarterly Data

per share eps CPI Adj_EPS
201503 0.758 99.621 1.013
201506 0.838 100.684 1.108
201509 0.873 100.392 1.158
201512 0.890 99.792 1.188
201603 0.826 100.470 1.095
201606 1.095 101.688 1.434
201609 1.087 101.861 1.421
201612 1.147 101.863 1.499
201703 1.038 102.862 1.344
201706 1.210 103.349 1.559
201709 1.225 104.136 1.566
201712 3.143 104.011 4.024
201803 1.184 105.290 1.497
201806 1.669 106.317 2.090
201809 1.663 106.507 2.079
201812 1.749 105.998 2.197
201903 1.620 107.251 2.011
201906 2.018 108.070 2.486
201909 2.070 108.329 2.544
201912 2.016 108.420 2.476
202003 1.584 108.902 1.937
202006 2.229 108.767 2.729
202009 2.386 109.815 2.893
202012 2.071 109.897 2.509
202103 2.066 111.754 2.462
202106 2.673 114.631 3.105
202109 2.397 115.734 2.758
202112 0.770 117.630 0.872
202203 2.642 121.301 2.900
202206 3.131 125.017 3.335
202209 2.131 125.227 2.266
202212 3.644 125.222 3.875
202303 3.232 127.348 3.379
202306 3.664 128.729 3.790
202309 3.964 129.860 4.065
202312 3.943 129.419 4.057
202403 3.616 131.776 3.654
202406 0.028 132.554 0.028
202409 4.352 133.029 4.356
202412 4.737 133.157 4.737

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


Primerica  (FRA:PI7) 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.

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

Shiller PE Ratio=Share Price/E10
=260.00/10.12
=25.69

* 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 Primerica was 30.77. The lowest was 12.78. And the median was 24.31.


Be Aware

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


Primerica E10 Related Terms

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


Primerica Business Description

Traded in Other Exchanges
Address
1 Primerica Parkway, Duluth, GA, USA, 30099
Primerica Inc is a provider of financial services to middle-income households in the United States and Canada. The company offers life insurance, mutual funds, annuities, and other financial products, distributed on behalf of third parties. Primerica has three main subsidiaries: Primerica Financial Services, a marketing company; Primerica Life Insurance Company, a principal life insurance underwriting entity; and PFS Investments, which offers investment and savings products, brokerage services, and registered investment advisory. It has four segments Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. Geogriphically, it derives a majority of its revenue from the US.

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