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Investor AB (LTS:0NC5) E10 : kr24.04 (As of Mar. 2024)


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What is Investor AB 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.

Investor AB's adjusted earnings per share data for the three months ended in Mar. 2024 was kr21.870. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is kr24.04 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Investor AB's average E10 Growth Rate was 20.70% per year. During the past 3 years, the average E10 Growth Rate was 20.40% per year. During the past 5 years, the average E10 Growth Rate was 18.70% 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 Investor AB was 28.10% per year. The lowest was -3.40% per year. And the median was 18.65% per year.

As of today (2024-05-17), Investor AB's current stock price is kr278.98182. Investor AB's E10 for the quarter that ended in Mar. 2024 was kr24.04. Investor AB's Shiller PE Ratio of today is 11.60.

During the past 13 years, the highest Shiller PE Ratio of Investor AB was 13.48. The lowest was 6.12. And the median was 10.58.


Investor AB E10 Historical Data

The historical data trend for Investor AB'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.

Investor AB E10 Chart

Investor AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.29 12.91 20.66 19.59 22.39

Investor AB Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 19.85 21.91 20.91 22.39 24.04

Competitive Comparison of Investor AB's E10

For the Asset Management subindustry, Investor AB'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.


Investor AB's Shiller PE Ratio Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Investor AB's Shiller PE Ratio distribution charts can be found below:

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



Investor AB 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, Investor AB's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=21.87/132.2054*132.2054
=21.870

Current CPI (Mar. 2024) = 132.2054.

Investor AB Quarterly Data

per share eps CPI Adj_EPS
201406 3.785 100.432 4.982
201409 4.580 100.161 6.045
201412 4.258 100.225 5.617
201503 11.138 99.950 14.732
201506 -2.783 99.995 -3.679
201509 -7.490 100.228 -9.880
201512 4.815 100.276 6.348
201603 -3.178 100.751 -4.170
201606 1.112 101.019 1.455
201609 10.053 101.138 13.141
201612 3.000 102.022 3.888
201703 9.935 102.022 12.874
201706 3.115 102.752 4.008
201709 1.755 103.279 2.247
201712 -0.330 103.793 -0.420
201803 1.440 103.962 1.831
201806 4.188 104.875 5.279
201809 8.360 105.679 10.458
201812 -14.738 105.912 -18.397
201903 9.410 105.886 11.749
201906 5.900 106.742 7.307
201909 6.730 107.214 8.299
201912 11.010 107.766 13.507
202003 -15.160 106.563 -18.808
202006 21.010 107.498 25.839
202009 8.870 107.635 10.895
202012 2.498 108.296 3.050
202103 28.790 108.360 35.126
202106 10.370 108.928 12.586
202109 8.800 110.338 10.544
202112 26.460 112.486 31.099
202203 -22.550 114.825 -25.963
202206 -21.380 118.384 -23.876
202209 2.730 122.296 2.951
202212 16.820 126.365 17.597
202303 10.720 127.042 11.156
202306 14.800 129.407 15.120
202309 -3.620 130.224 -3.675
202312 19.560 131.912 19.604
202403 21.870 132.205 21.870

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


Investor AB  (LTS:0NC5) 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.

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

Shiller PE Ratio=Share Price/E10
=278.98182/24.04
=11.60

* 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 Investor AB was 13.48. The lowest was 6.12. And the median was 10.58.


Be Aware

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


Investor AB E10 Related Terms

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


Investor AB (LTS:0NC5) Business Description

Address
Arsenalsgatan 8C, Stockholm, SWE, SE-103 32
Investor AB is an industrial holding company with a long-term, active investment portfolio strategy. The company focuses on investing in companies that emphasize innovation and product development. Investor AB's so-called "buy-to-build" strategy seeks not to divest holdings, but rather to develop them over time in order to close the gap between price and value. A majority of its equity investments are made in the country of Sweden and greater Scandinavia, where the company mostly operates. The company measures performance by changes in net asset value and seeks to outperform the Stockholm Stock Exchange's OMSX Index. In 2015, Investor AB also formed and currently operates Patricia Industries, a sizable component of the company that was formed to manage its unlisted investments.

Investor AB (LTS:0NC5) Headlines

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