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Ferguson Enterprises (LSE:FERG) E10 : £6.15 (As of Jan. 2025)


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What is Ferguson Enterprises 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.

Ferguson Enterprises's adjusted earnings per share data for the three months ended in Jan. 2025 was £1.116. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is £6.15 for the trailing ten years ended in Jan. 2025.

During the past 12 months, Ferguson Enterprises's average E10 Growth Rate was 48.50% per year. During the past 3 years, the average E10 Growth Rate was 17.40% per year. During the past 5 years, the average E10 Growth Rate was 18.30% 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 Ferguson Enterprises was 20.50% per year. The lowest was -5.70% per year. And the median was 7.25% per year.

As of today (2025-04-05), Ferguson Enterprises's current stock price is £119.40. Ferguson Enterprises's E10 for the quarter that ended in Jan. 2025 was £6.15. Ferguson Enterprises's Shiller PE Ratio of today is 19.41.

During the past 13 years, the highest Shiller PE Ratio of Ferguson Enterprises was 48.09. The lowest was 20.71. And the median was 34.72.


Ferguson Enterprises E10 Historical Data

The historical data trend for Ferguson Enterprises'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.

Ferguson Enterprises E10 Chart

Ferguson Enterprises Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.20 2.52 3.62 3.83 4.38

Ferguson Enterprises Quarterly Data
Jan20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 4.07 4.38 4.38 5.43 6.15

Competitive Comparison of Ferguson Enterprises's E10

For the Industrial Distribution subindustry, Ferguson Enterprises'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.


Ferguson Enterprises's Shiller PE Ratio Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's Shiller PE Ratio distribution charts can be found below:

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


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Ferguson Enterprises 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, Ferguson Enterprises's adjusted earnings per share data for the three months ended in Jan. 2025 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jan. 2025 (Change)*Current CPI (Jan. 2025)
=1.116/134.0288*134.0288
=1.116

Current CPI (Jan. 2025) = 134.0288.

Ferguson Enterprises Quarterly Data

per share eps CPI Adj_EPS
201001 -0.881 91.423 -1.292
201007 -0.481 91.981 -0.701
201101 0.535 92.914 0.772
201107 0.579 95.319 0.814
201201 0.687 95.632 0.963
201207 -0.470 96.661 -0.652
201301 0.488 97.158 0.673
201307 0.614 98.557 0.835
201401 0.896 98.692 1.217
201407 1.109 100.520 1.479
201501 -0.234 98.604 -0.318
201507 1.095 100.691 1.458
201601 1.094 99.957 1.467
201607 1.507 101.524 1.990
201701 0.922 102.456 1.206
201707 2.074 103.278 2.692
201801 1.316 104.578 1.687
201807 2.507 106.324 3.160
201901 1.959 106.200 2.472
201907 1.807 108.250 2.237
202001 1.572 108.841 1.936
202007 1.716 109.318 2.104
202010 1.147 109.861 1.399
202101 0.301 110.364 0.366
202104 1.184 112.673 1.408
202107 2.179 115.183 2.536
202110 1.832 116.696 2.104
202201 1.454 118.619 1.643
202204 1.933 121.978 2.124
202207 2.252 125.002 2.415
202210 2.505 125.734 2.670
202301 1.471 126.223 1.562
202304 1.309 127.992 1.371
202307 2.212 128.974 2.299
202310 2.085 129.810 2.153
202401 1.243 130.124 1.280
202404 1.742 132.289 1.765
202407 1.733 132.708 1.750
202410 1.795 133.182 1.806
202501 1.116 134.029 1.116

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


Ferguson Enterprises  (LSE:FERG) 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.

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

Shiller PE Ratio=Share Price/E10
=119.40/6.15
=19.41

* 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 Ferguson Enterprises was 48.09. The lowest was 20.71. And the median was 34.72.


Be Aware

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


Ferguson Enterprises E10 Related Terms

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


Ferguson Enterprises Business Description

Traded in Other Exchanges
Address
751 Lakefront Commons, Newport News, VA, USA, 23606
Ferguson distributes plumbing and HVAC products to North American repair, maintenance and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 36,000 suppliers. Ferguson engages customers through approximately 1,800 North American branches, over the phone, online, and in residential showrooms. According to Modern Distribution Management, Ferguson is the largest plumbing distributor and second-largest HVAC distributor (next to Watsco) in North America. The firm sold its UK business in 2021 and is now solely focused on the North American market.