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Baxter International (MEX:BAX) E10 : MXN52.62 (As of Mar. 2024)


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What is Baxter International 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.

Baxter International's adjusted earnings per share data for the three months ended in Mar. 2024 was MXN1.162. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is MXN52.62 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Baxter International's average E10 Growth Rate was 4.90% per year. During the past 3 years, the average E10 Growth Rate was -5.20% per year. During the past 5 years, the average E10 Growth Rate was -4.50% per year. During the past 10 years, the average E10 Growth Rate was 0.50% 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 Baxter International was 15.70% per year. The lowest was -6.80% per year. And the median was 7.40% per year.

As of today (2024-06-21), Baxter International's current stock price is MXN621.10. Baxter International's E10 for the quarter that ended in Mar. 2024 was MXN52.62. Baxter International's Shiller PE Ratio of today is 11.80.

During the past 13 years, the highest Shiller PE Ratio of Baxter International was 24.01. The lowest was 9.56. And the median was 14.89.


Baxter International E10 Historical Data

The historical data trend for Baxter International'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.

Baxter International E10 Chart

Baxter International 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 76.00 76.44 80.40 60.60 63.83

Baxter International 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 54.31 48.53 66.18 63.83 52.62

Competitive Comparison of Baxter International's E10

For the Medical Instruments & Supplies subindustry, Baxter International'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.


Baxter International's Shiller PE Ratio Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Baxter International's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Baxter International's Shiller PE Ratio falls into.



Baxter International 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, Baxter International'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)
=1.162/131.7762*131.7762
=1.162

Current CPI (Mar. 2024) = 131.7762.

Baxter International Quarterly Data

per share eps CPI Adj_EPS
201406 12.321 100.560 16.146
201409 11.547 100.428 15.151
201412 25.665 99.070 34.138
201503 11.891 99.621 15.729
201506 9.414 100.684 12.321
201509 0.031 100.392 0.041
201512 6.362 99.792 8.401
201603 105.350 100.470 138.176
201606 40.501 101.688 52.485
201609 4.641 101.861 6.004
201612 9.484 101.863 12.269
201703 9.226 102.862 11.819
201706 8.676 103.349 11.062
201709 8.167 104.136 10.335
201712 -2.553 104.011 -3.235
201803 12.899 105.290 16.144
201806 12.379 106.317 15.343
201809 17.770 106.507 21.986
201812 12.763 105.998 15.867
201903 12.803 107.251 15.731
201906 11.525 108.070 14.053
201909 14.017 108.329 17.051
201912 -0.754 108.420 -0.916
202003 15.007 108.902 18.159
202006 11.079 108.767 13.423
202009 15.243 109.815 18.291
202012 6.564 109.897 7.871
202103 11.856 111.754 13.980
202106 11.745 114.631 13.502
202109 18.300 115.734 20.837
202112 9.642 117.630 10.802
202203 2.788 121.301 3.029
202206 10.059 125.017 10.603
202209 -117.270 125.227 -123.404
202212 7.019 125.222 7.386
202303 1.622 127.348 1.678
202306 -4.800 128.729 -4.914
202309 85.875 129.860 87.142
202312 8.148 129.419 8.296
202403 1.162 131.776 1.162

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


Baxter International  (MEX:BAX) 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.

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

Shiller PE Ratio=Share Price/E10
=621.10/52.62
=11.80

* 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 Baxter International was 24.01. The lowest was 9.56. And the median was 14.89.


Be Aware

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


Baxter International E10 Related Terms

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


Baxter International (MEX:BAX) Business Description

Address
One Baxter Parkway, Deerfield, IL, USA, 60015
Baxter offers a variety of medical instruments and supplies to caregivers. It enhanced its portfolio of hospital-focused offerings by acquiring Hillrom in late 2021, which added basic equipment, including hospital beds, to the portfolio, although about half of Hillrom's revenue comes from more digitally connected offerings like its smart beds and Voalte medical communications app. From its legacy operations, Baxter offers tools to help patients with acute and chronic kidney failure, which it plans to spin off by mid-2024. It also sells a variety of injectable therapies for use in care settings, such as IV pumps, administrative sets, and solutions; nutritional products; and surgical sealants and hemostatic agents.