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General Electric Co (NYSE:GE) E10

: $-0.94 (As of Jun. 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.

General Electric Co's adjusted earnings per share data for the three months ended in Jun. 2023 was $-0.020. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.94 for the trailing ten years ended in Jun. 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.

During the past 13 years, the highest 3-Year average E10 Growth Rate of General Electric Co was 13.80% per year. The lowest was -52.20% per year. And the median was 6.45% per year.

As of today (2023-09-29), General Electric Co's current stock price is $109.985. General Electric Co's E10 for the quarter that ended in Jun. 2023 was $-0.94. General Electric Co's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of General Electric Co was 1202.89. The lowest was 8.86. And the median was 15.14.


General Electric Co E10 Historical Data

The historical data trend for General Electric Co'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.

General Electric Co Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.03 2.65 2.14 0.44 -0.92

General Electric Co Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 -0.32 -0.68 -0.92 -0.62 -0.94

General Electric Co 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, General Electric Co's adjusted earnings per share data for the three months ended in Jun. 2023 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2023 (Change)*Current CPI (Jun. 2023)
=-0.02/128.7287*128.7287
=-0.020

Current CPI (Jun. 2023) = 128.7287.

General Electric Co Quarterly Data

per share eps CPI Adj_EPS
201309 2.480 98.790 3.232
201312 3.280 98.326 4.294
201403 2.400 99.695 3.099
201406 2.800 100.560 3.584
201409 2.800 100.428 3.589
201412 4.080 99.070 5.301
201503 -10.800 99.621 -13.956
201506 -1.040 100.684 -1.330
201509 2.000 100.392 2.565
201512 5.120 99.792 6.605
201603 -0.080 100.470 -0.103
201606 2.400 101.688 3.038
201609 1.760 101.861 2.224
201612 3.120 101.863 3.943
201703 -0.080 102.862 -0.100
201706 0.800 103.349 0.996
201709 1.200 104.136 1.483
201712 -9.040 104.011 -11.188
201803 -1.120 105.290 -1.369
201806 0.560 106.317 0.678
201809 -20.960 106.507 -25.333
201812 0.560 105.998 0.680
201903 3.200 107.251 3.841
201906 -0.080 108.070 -0.095
201909 -8.640 108.329 -10.267
201912 0.480 108.420 0.570
202003 5.600 108.902 6.620
202006 -2.080 108.767 -2.462
202009 -1.090 109.815 -1.278
202012 2.160 109.897 2.530
202103 -2.620 111.754 -3.018
202106 -1.080 114.631 -1.213
202109 1.080 115.734 1.201
202112 -3.550 117.630 -3.885
202203 -1.080 121.301 -1.146
202206 -0.860 125.017 -0.886
202209 -0.210 125.227 -0.216
202212 1.560 125.222 1.604
202303 6.710 127.348 6.783
202306 -0.020 128.729 -0.020

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


General Electric Co  (NYSE:GE) 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.

During the past 13 years, the highest Shiller P/E Ratio of General Electric Co was 1202.89. The lowest was 8.86. And the median was 15.14.


Be Aware

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


General Electric Co E10 Related Terms

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


General Electric Co (NYSE:GE) Business Description

General Electric Co logo
Address
5 Necco Street, Boston, MA, USA, 02210
GE was formed through the combination of two companies in 1892, including one with historical ties to American inventor Thomas Edison. Today, GE is a global leader in air travel and in the energy transition. The company is known for its differentiated technology and its massive industrial installed base of equipment sprawled throughout the world. That installed base most notably includes aerospace engines, gas and steam turbines, and onshore and offshore wind turbines. GE earns most of its profits on the service revenue of that equipment, which is generally higher-margin. The company is led by former Danaher alumnus Larry Culp, who is leading a multiyear turnaround of the storied conglomerate based on lean principles.
Executives
Rahul Ghai officer: Senior Vice President GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210
Jessica R. Uhl director 200 WEST STREET, NEW YORK NY 10282
Darren W Mcdew director 100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
Thomas S Timko officer: Vice President 300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000
L Kevin Cox officer: Senior Vice President THE PEPSI BOTTLING GROUP, INC., ONE PEPSI WAY, SOMERS NY 10589
Russell Stokes officer: Senior Vice President ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Scott Strazik officer: Senior Vice President ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Michael J Holston officer: Senior Vice President GENERAL ELECTRIC COMPANY, ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Happe Carolina Dybeck officer: Senior Vice President 5 NECCO STREET, BOSTON MA 02210
John S. Slattery officer: Executive Vice President 5 NECCO STREET, BOSTON MA 02210
Thomas W Horton director 4333 AMON CARTER BLVD., FORTH WORTH TX 76155
Isabella D Goren director C/O LYONDELLBASELL INDUSTRIES N V, DELFTSEPLEIN 27E, ROTTERDAM P7 3013AA
Francisco Dsouza director 500 GLENPOINTE CENTRE W, TEANECK NJ 07666
Risa J Lavizzo-mourey director GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 60661
Paula Rosput Reynolds director 605 HILLSIDE DRIVE EAST, SEATTLE WA 98112