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Eaton (MEX:ETN1) E10 : MXN143.16 (As of Dec. 2024)


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What is Eaton 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.

Eaton's adjusted earnings per share data for the three months ended in Dec. 2024 was MXN51.096. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is MXN143.16 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Eaton's average E10 Growth Rate was 9.70% per year. During the past 3 years, the average E10 Growth Rate was 11.10% per year. During the past 5 years, the average E10 Growth Rate was 9.00% per year. During the past 10 years, the average E10 Growth Rate was 7.40% 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 Eaton was 12.80% per year. The lowest was 2.20% per year. And the median was 9.60% per year.

As of today (2025-03-25), Eaton's current stock price is MXN5978.77. Eaton's E10 for the quarter that ended in Dec. 2024 was MXN143.16. Eaton's Shiller PE Ratio of today is 41.76.

During the past 13 years, the highest Shiller PE Ratio of Eaton was 58.79. The lowest was 14.37. And the median was 22.36.


Eaton E10 Historical Data

The historical data trend for Eaton'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.

Eaton E10 Chart

Eaton Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 87.68 98.22 105.24 96.86 143.16

Eaton Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 96.86 102.68 117.36 126.46 143.16

Competitive Comparison of Eaton's E10

For the Specialty Industrial Machinery subindustry, Eaton'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.


Eaton's Shiller PE Ratio Distribution in the Industrial Products Industry

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

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



Eaton 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, Eaton's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=51.096/122.4391*122.4391
=51.096

Current CPI (Dec. 2024) = 122.4391.

Eaton Quarterly Data

per share eps CPI Adj_EPS
201503 15.093 99.975 18.484
201506 17.887 100.573 21.776
201509 16.222 100.274 19.808
201512 19.774 99.676 24.290
201603 15.148 99.676 18.607
201606 19.788 101.072 23.971
201609 22.236 100.274 27.151
201612 23.091 99.676 28.364
201703 18.076 100.374 22.050
201706 20.787 100.673 25.281
201709 56.985 100.474 69.443
201712 28.084 100.075 34.360
201803 19.984 100.573 24.329
201806 27.313 101.072 33.087
201809 17.770 101.371 21.463
201812 28.667 100.773 34.831
201903 23.860 101.670 28.734
201906 28.813 102.168 34.530
201909 28.428 102.268 34.035
201912 20.557 102.068 24.660
202003 25.089 102.367 30.008
202006 3.001 101.769 3.611
202009 24.521 101.072 29.705
202012 23.473 101.072 28.435
202103 23.303 102.367 27.872
202106 25.082 103.364 29.711
202109 32.282 104.859 37.694
202112 28.104 106.653 32.264
202203 26.482 109.245 29.680
202206 30.177 112.779 32.762
202209 30.575 113.504 32.982
202212 35.093 115.436 37.222
202303 28.660 117.609 29.837
202306 31.888 119.662 32.628
202309 38.670 120.749 39.211
202312 39.889 120.749 40.447
202403 33.856 120.990 34.261
202406 45.434 122.318 45.479
202409 49.816 121.594 50.162
202412 51.096 122.439 51.096

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


Eaton  (MEX:ETN1) 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.

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

Shiller PE Ratio=Share Price/E10
=5978.77/143.16
=41.76

* 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 Eaton was 58.79. The lowest was 14.37. And the median was 22.36.


Be Aware

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


Eaton E10 Related Terms

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


Eaton Business Description

Address
30 Pembroke Road, Eaton House, Dublin, IRL, D04 Y0C2
Founded in 1911 by Joseph Eaton, the eponymous company began by selling truck axles in New Jersey. Eaton has since become an industrial powerhouse largely through acquisitions in various end markets. Eaton's portfolio can broadly be divided into two parts: its electrical and industrial businesses. Its electrical portfolio (representing around 70% of company revenue) sells components within data centers, utilities, and commercial and residential buildings, while its industrial business (30% of revenue) sells components within commercial and passenger vehicles and aircraft. Eaton receives favorable tax treatment as a domiciliary of Ireland, but it generates over half of its revenue within the US.

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