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Fortive (Fortive) E10

: $3.81 (As of Dec. 2023)
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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.

Fortive's adjusted earnings per share data for the three months ended in Dec. 2023 was $0.750. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.81 for the trailing ten years ended in Dec. 2023.

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.

As of today (2024-04-19), Fortive's current stock price is $79.49. Fortive's E10 for the quarter that ended in Dec. 2023 was $3.81. Fortive's Shiller PE Ratio of today is 20.86.

During the past 12 years, the highest Shiller PE Ratio of Fortive was 22.60. The lowest was 18.75. And the median was 21.96.


Fortive E10 Historical Data

The historical data trend for Fortive'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.

Fortive Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - 3.81

Fortive Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 - - - - 3.81

Competitive Comparison

For the Scientific & Technical Instruments subindustry, Fortive'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.


Fortive Shiller PE Ratio Distribution

For the Hardware industry and Technology sector, Fortive's Shiller PE Ratio distribution charts can be found below:

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



Fortive 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, Fortive's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.75/129.4194*129.4194
=0.750

Current CPI (Dec. 2023) = 129.4194.

Fortive Quarterly Data

per share eps CPI Adj_EPS
201212 0.000 96.871 0.000
201312 0.000 98.326 0.000
201409 0.000 100.428 0.000
201412 0.663 99.070 0.866
201503 0.590 99.621 0.766
201506 0.659 100.684 0.847
201509 0.570 100.392 0.735
201512 0.684 99.792 0.887
201603 0.527 100.470 0.679
201606 0.690 101.688 0.878
201609 0.650 101.861 0.826
201612 0.640 101.863 0.813
201703 0.570 102.862 0.717
201706 0.680 103.349 0.852
201709 0.760 104.136 0.945
201712 0.950 104.011 1.182
201803 0.740 105.290 0.910
201806 0.830 106.317 1.010
201809 0.640 106.507 0.778
201812 6.170 105.998 7.533
201903 0.430 107.251 0.519
201906 0.470 108.070 0.563
201909 0.560 108.329 0.669
201912 0.520 108.420 0.621
202003 0.070 108.902 0.083
202006 0.330 108.767 0.393
202009 0.610 109.815 0.719
202012 3.370 109.897 3.969
202103 0.270 111.754 0.313
202106 0.480 114.631 0.542
202109 0.420 115.734 0.470
202112 0.450 117.630 0.495
202203 0.450 121.301 0.480
202206 0.480 125.017 0.497
202209 0.530 125.227 0.548
202212 0.640 125.222 0.661
202303 0.490 127.348 0.498
202306 0.590 128.729 0.593
202309 0.610 129.860 0.608
202312 0.750 129.419 0.750

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


Fortive  (NYSE:FTV) 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.

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

Shiller PE Ratio=Share Price/E10
=79.49/3.81
=20.86

* 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 12 years, the highest Shiller P/E Ratio of Fortive was 22.60. The lowest was 18.75. And the median was 21.96.


Be Aware

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


Fortive E10 Related Terms

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


Fortive (Fortive) Business Description

Traded in Other Exchanges
Address
6920 Seaway Boulevard, Everett, WA, USA, 98203
Fortive is a diversified industrial technology firm with a broad portfolio of mission-critical products and services that include field solutions, product realization, health, and sensing technologies. The company serves a wide range of end markets, including manufacturing, utilities, medical, and electronics. Fortive generated roughly $5.8 billion in revenue and $1.4 billion in adjusted operating income in 2022.
Executives
Charles E Mclaughlin officer: SVP - Chief Financial Officer C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
Patrick K Murphy officer: Senior Vice President C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
Christopher M. Mulhall officer: VP - Chief Accounting Officer C/O FORTIVE CORPORATION, 6920 SEAWAY BLVD, EVERETT WA 98203
Stacey A. Walker officer: SVP - Human Resources C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
Eric Branderiz director 915 DEGUIGNE DRIVE, PO BOX 3453, SUNNYVALE CA 94088-3453
Alan G Spoon director, other: Chairman 1150 15TH ST NW, WASHINGTON DC 20071
Tamara S. Newcombe officer: President & CEO of PT 6920 SEAWAY BLVD., EVERETT WA 98203
Wright Iii Lassiter director 500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS, SECAUCUS NJ 07094
Barbara B. Hulit officer: Senior Vice President C/O FORTIVE CORPORATION, 6920 SEAWAY BLVD, EVERETT WA 98203
Jonathan L Schwarz officer: VP-Corporate Development C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
James A Lico officer: President, CEO and Secretary
Peter C Underwood officer: SVP-General Counsel/Secretary 200 STATE STREET, BELOIT WI 53511
Olumide Soroye officer: President & CEO of IOS 6920 SEAWAY BLVD., EVERETT WA 98203
Steven M Rales director 2200 PENNSYLVANIA AVENUE, NW, SUITE 800W, WASHINGTON DC 20037
William W Pringle officer: Senior Vice President C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203

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