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Mastercard E10

: $3.30 (As of Jun. 2019)
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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.

Mastercard's adjusted earnings per share data for the three months ended in Jun. 2019 was $2.000. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.30 for the trailing ten years ended in Jun. 2019.

As of today (2019-10-15), Mastercard's current stock price is $278.56. Mastercard's E10 for the quarter that ended in Jun. 2019 was $3.30. Mastercard's Shiller PE Ratio of today is 84.41.

During the past 13 years, the highest Shiller PE Ratio of Mastercard was 88.30. The lowest was 48.93. And the median was 65.79.


Mastercard E10 Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Mastercard Annual Data
Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.29 1.59 1.99 2.30 2.92

Mastercard Quarterly Data
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
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 2.66 2.89 2.92 3.10 3.30

Competitive Comparison
* 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.


Mastercard E10 Distribution

* The bar in red indicates where Mastercard's E10 falls into.



Mastercard 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.

For example, Mastercard's adjusted earnings per share data for the three months ended in Jun. 2019 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2019 (Change)*Current CPI (Jun. 2019)
=2/256.143*256.143
=2.000

Current CPI (Jun. 2019) = 256.143.

Mastercard Quarterly Data

per share eps CPI Adj_EPS
200909 0.345 215.969 0.409
200912 0.224 215.949 0.266
201003 0.346 217.631 0.407
201006 0.349 217.965 0.410
201009 0.394 218.439 0.462
201012 0.316 219.179 0.369
201103 0.429 223.467 0.492
201106 0.476 225.722 0.540
201109 0.563 226.889 0.636
201112 0.015 225.672 0.017
201203 0.536 229.392 0.599
201206 0.555 229.478 0.619
201209 0.617 231.407 0.683
201212 0.486 229.601 0.542
201303 0.620 232.773 0.682
201306 0.700 233.504 0.768
201309 0.730 234.149 0.799
201312 0.052 233.049 0.057
201403 0.730 236.293 0.791
201406 0.800 238.343 0.860
201409 0.870 238.031 0.936
201412 0.690 234.812 0.753
201503 0.890 236.119 0.965
201506 0.810 238.638 0.869
201509 0.860 237.945 0.926
201512 0.790 236.525 0.856
201603 0.860 238.132 0.925
201606 0.890 241.018 0.946
201609 1.080 241.428 1.146
201612 0.860 241.432 0.912
201703 1.000 243.801 1.051
201706 1.100 244.955 1.150
201709 1.340 246.819 1.391
201712 0.210 246.524 0.218
201803 1.410 249.554 1.447
201806 1.500 251.989 1.525
201809 1.820 252.439 1.847
201812 0.870 251.233 0.887
201903 1.800 254.202 1.814
201906 2.000 256.143 2.000

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


Mastercard  (NYSE:MA) 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.

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

Shiller PE Ratio=Share Price/E10
=278.56/3.30
=84.41

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

During the past 13 years, the highest Shiller P/E Ratio of Mastercard was 88.30. The lowest was 48.93. And the median was 65.79.


Be Aware

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


Mastercard E10 Related Terms

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