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PepsiCo E10

: $4.88 (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.

PepsiCo's adjusted earnings per share data for the three months ended in Jun. 2019 was $1.440. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.88 for the trailing ten years ended in Jun. 2019.

As of today, PepsiCo's current stock price is $132.87. PepsiCo's E10 for the quarter that ended in Jun. 2019 was $4.88. PepsiCo's Shiller PE Ratio of today is 27.23.

During the past 13 years, the highest Shiller PE Ratio of PepsiCo was 29.20. The lowest was 18.40. And the median was 23.04.


PepsiCo 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.

PepsiCo 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 3.93 4.04 4.15 4.17 4.76

PepsiCo 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 4.27 4.33 4.76 4.82 4.88

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.


PepsiCo E10 Distribution

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



PepsiCo 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, PepsiCo'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)
=1.44/256.364*256.364
=1.440

Current CPI (Jun. 2019) = 256.364.

PepsiCo Quarterly Data

per share eps CPI Adj_EPS
200909 1.090 215.969 1.294
200912 0.900 215.949 1.068
201003 0.890 217.631 1.048
201006 0.980 217.965 1.153
201009 1.190 218.439 1.397
201012 0.850 219.179 0.994
201103 0.710 223.467 0.815
201106 1.170 225.722 1.329
201109 1.250 226.889 1.412
201112 0.890 225.672 1.011
201203 0.710 229.392 0.793
201206 0.940 229.478 1.050
201209 1.210 231.407 1.340
201212 1.060 229.601 1.184
201303 0.690 232.773 0.760
201306 1.280 233.504 1.405
201309 1.230 234.149 1.347
201312 1.120 233.049 1.232
201403 0.790 236.293 0.857
201406 1.290 238.343 1.388
201409 1.320 238.031 1.422
201412 0.870 234.812 0.950
201503 0.810 236.119 0.879
201506 1.330 238.638 1.429
201509 0.360 237.945 0.388
201512 1.170 236.525 1.268
201603 0.640 238.132 0.689
201606 1.380 241.018 1.468
201609 1.370 241.428 1.455
201612 0.970 241.432 1.030
201703 0.910 243.801 0.957
201706 1.460 244.955 1.528
201709 1.490 246.819 1.548
201712 -0.500 246.524 -0.520
201803 0.940 249.554 0.966
201806 1.280 251.989 1.302
201809 1.750 252.439 1.777
201812 4.830 251.233 4.929
201903 1.000 254.202 1.009
201906 1.440 256.364 1.440

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


PepsiCo  (NAS:PEP) 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.

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

Shiller PE Ratio=Share Price/E10
=132.87/4.88
=27.23

* 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 PepsiCo was 29.20. The lowest was 18.40. And the median was 23.04.


Be Aware

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


PepsiCo E10 Explanation

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