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ArcelorMittal SA  (NYSE:MT) E10: $0.44 (As of Sep. 2017)

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.

ArcelorMittal SA's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.180. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.44 for the trailing ten years ended in Sep. 2017.

As of today, ArcelorMittal SA's current stock price is $36.68. ArcelorMittal SA's E10 for the quarter that ended in Sep. 2017 was $0.44. ArcelorMittal SA's Shiller PE Ratio of today is 83.36.

During the past 13 years, the highest Shiller PE Ratio of ArcelorMittal SA was 59.21. The lowest was 2.49. And the median was 5.72.


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.

ArcelorMittal SA Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.36 10.55 6.44 2.87 1.29

ArcelorMittal SA Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 1.68 1.29 1.10 0.70 0.44

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.


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, ArcelorMittal SA's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=1.18/246.819*246.819
=1.180

Current CPI (Sep. 2017) = 246.819.

ArcelorMittal SA Quarterly Data

per share eps CPI Adj_EPS
200712 4.052 210.036 4.762
200803 4.004 213.528 4.628
200806 9.987 218.815 11.265
200809 6.626 218.783 7.475
200812 -4.338 210.228 -5.093
200903 -1.859 212.709 -2.157
200906 -1.359 215.693 -1.555
200909 1.430 215.969 1.634
200912 1.835 215.949 2.097
201003 0.787 217.631 0.893
201006 1.788 217.965 2.025
201009 2.121 218.439 2.397
201012 -1.239 219.179 -1.395
201103 1.645 223.467 1.817
201106 2.217 225.722 2.424
201109 0.453 226.889 0.493
201112 -1.311 225.672 -1.434
201203 0.143 229.392 0.154
201206 1.430 229.478 1.538
201209 -1.001 231.407 -1.068
201212 -5.863 229.601 -6.303
201303 -0.501 232.773 -0.531
201306 -1.049 233.504 -1.109
201309 -0.286 234.149 -0.301
201312 -1.645 233.049 -1.742
201403 -0.286 236.293 -0.299
201406 0.072 238.343 0.075
201409 0.024 238.031 0.025
201412 -1.263 234.812 -1.328
201503 -1.230 236.119 -1.286
201506 0.300 238.638 0.310
201509 -0.930 237.945 -0.965
201512 -11.160 236.525 -11.646
201603 -0.690 238.132 -0.715
201606 1.130 241.018 1.157
201609 0.670 241.428 0.685
201612 0.390 241.432 0.399
201703 0.980 243.801 0.992
201706 1.290 244.955 1.300
201709 1.180 246.819 1.180

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

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

Shiller PE Ratio=Share Price/E10
=36.68/0.44
=83.36

* 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 ArcelorMittal SA was 59.21. The lowest was 2.49. And the median was 5.72.


Be Aware

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


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