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Medtronic (NYSE:MDT) E10

: $3.30 (As of Oct. 2022)
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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.

Medtronic's adjusted earnings per share data for the three months ended in Oct. 2022 was $0.320. 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 Oct. 2022.

As of today (2022-11-26), Medtronic's current stock price is $79.12. Medtronic's E10 for the quarter that ended in Oct. 2022 was $3.30. Medtronic's Shiller PE Ratio of today is 23.98.

During the past 13 years, the highest Shiller PE Ratio of Medtronic was 44.14. The lowest was 15.63. And the median was 28.90.


Medtronic (NYSE:MDT) E10 Historical Data

The historical data trend for Medtronic'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.

Medtronic Annual Data
Trend Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.80 3.00 3.06 3.05 3.27

Medtronic Quarterly Data
Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22
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 3.11 3.15 3.27 3.33 3.30

Medtronic (NYSE:MDT) E10 Competitive Comparison

For the Medical Devices subindustry, Medtronic's E10, along with its competitors' market caps and E10 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.

   

Medtronic (NYSE:MDT) E10 Distribution

For the Medical Devices & Instruments industry and Healthcare sector, Medtronic's E10 distribution charts can be found below:

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



Medtronic 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, Medtronic's adjusted earnings per share data for the three months ended in Oct. 2022 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Oct. 2022 (Change)*Current CPI (Oct. 2022)
=0.32/113.4313*113.4313
=0.320

Current CPI (Oct. 2022) = 113.4313.

Medtronic Quarterly Data

per share eps CPI Adj_EPS
201301 0.970 99.178 1.109
201304 0.950 100.374 1.074
201307 0.930 100.274 1.052
201310 0.890 100.075 1.009
201401 0.750 99.377 0.856
201404 0.440 100.673 0.496
201407 0.870 100.573 0.981
201410 0.830 100.274 0.939
201501 0.980 98.779 1.125
201504 -0.001 99.975 -0.001
201507 0.570 100.374 0.644
201510 0.360 100.075 0.408
201601 0.770 98.879 0.883
201604 0.780 99.875 0.886
201607 0.660 100.872 0.742
201610 0.800 99.776 0.909
201701 0.590 99.178 0.675
201704 0.840 100.773 0.946
201707 0.740 100.673 0.834
201710 1.480 100.374 1.673
201801 -1.030 99.377 -1.176
201804 1.070 100.374 1.209
201807 0.790 101.470 0.883
201810 0.820 101.271 0.918
201901 0.940 100.075 1.065
201904 0.870 102.068 0.967
201907 0.640 101.969 0.712
201910 1.010 101.969 1.124
202001 1.420 101.371 1.589
202004 0.480 101.969 0.534
202007 0.360 101.570 0.402
202010 0.360 100.474 0.406
202101 0.940 101.171 1.054
202104 1.000 103.065 1.101
202107 0.560 103.763 0.612
202110 0.970 105.557 1.042
202201 1.100 106.255 1.174
202204 1.100 110.242 1.132
202207 0.700 113.232 0.701
202210 0.320 113.431 0.320

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


Medtronic  (NYSE:MDT) 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.

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

Shiller PE Ratio=Share Price/E10
=79.12/3.3
=23.98

* 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 Medtronic was 44.14. The lowest was 15.63. And the median was 28.90.


Be Aware

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


Medtronic E10 Related Terms

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


Medtronic (NYSE:MDT) Business Description

Medtronic logo
Address
Lower Hatch Street, 20 On Hatch, Dublin, IRL, 2
One of the largest medical device companies, Medtronic develops and manufactures therapeutic medical devices for chronic diseases. Its portfolio includes pacemakers, defibrillators, heart valves, stents, insulin pumps, spinal fixation devices, neurovascular products, advanced energy, and surgical tools. The company markets its products to healthcare institutions and physicians in the United States and overseas. Foreign sales account for almost 50% of the company's total sales.
Executives
Fong Ivan K officer: EVP GENERAL COUNSEL & SECR 3M CENTER ST. PAUL MN 55144-1000
Kirk Jennifer M officer: Chief Accounting Officer 5 GREENWAY PLAZA SUITE 110 HOUSTON TX 77046
Lofton Kevin E director GILEAD SCIENCES, INC. 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Wall Brett A. officer: EVP & Group Pres Restora Thera 710 MEDTRONIC PARKWAY LC300 MINNEAPOLIS MN 55432
Salmon Sean officer: EVP & Group President Diabetes MEDTRONIC PLC, 710 MEDTRONIC PARKWAY LC300 MINNEAPOLIS MN 55432
Goldsmith Andrea Jo director 1220 AUGUSTA DRIVE SUITE 600 HOUSTON TX 77057
Liddicoat John R officer: EVP & President of Americas MEDTRONIC PLC 710 MEDTRONIC PKWY, MS LC300 MINNEAPOLIS MN 55432
White Robert John officer: EVP & President MITG MEDTRONIC PLC 710 MEDTRONIC PKWY MS LC300 MINNEAPOLIS MN 55432
Parkhill Karen L officer: EVP & Chief Financial Officer 1717 MAIN STREET, MC 6402 DALLAS TX 75201
Reddy Preetha director APOLLO HOSPITALS 21 GREAMS LN, OFF GREAMS RD CHENNAI K7 600006
Ellis Gary Lee officer: EVP & Chief Financial Officer THE TORO COMPANY 8111 LYNDALE AVENUE SOUTH BLOOMINGTON MN 55420
Hanson Bryan C officer: EVP AND PRESIDENT, COVIDIEN ZIMMER BIOMET HOLDINGS 345 E. MAIN STREET WARSAW IN 46580
Hakami Hooman officer: EVP & Group President Diabetes 710 MEDTRONIC PKWY MSLC300 MINNEAPOLIS MN 55432
Oconnell Christopher J officer: See Remarks MEDTRONIC, INC. 710 MEDTRONIC PKWY MINNEAPOLIS MN 55432
Lenehan James T director C/O MEDTRONIC INC 710 MEDTRONIC PKWY MS LC300 MINNEAPOLIS MN 55432

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