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Tata Chemicals (NSE:TATACHEM) E10 : ₹84.72 (As of Dec. 2024)


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What is Tata Chemicals 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.

Tata Chemicals's adjusted earnings per share data for the three months ended in Dec. 2024 was ₹-2.080. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₹84.72 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Tata Chemicals's average E10 Growth Rate was 6.20% per year. During the past 3 years, the average E10 Growth Rate was 8.80% 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 Tata Chemicals was 8.80% per year. The lowest was -5.10% per year. And the median was 1.85% per year.

As of today (2025-03-17), Tata Chemicals's current stock price is ₹796.10. Tata Chemicals's E10 for the quarter that ended in Dec. 2024 was ₹84.72. Tata Chemicals's Shiller PE Ratio of today is 9.40.

During the past 13 years, the highest Shiller PE Ratio of Tata Chemicals was 17.54. The lowest was 2.54. And the median was 12.94.


Tata Chemicals E10 Historical Data

The historical data trend for Tata Chemicals'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.

Tata Chemicals E10 Chart

Tata Chemicals Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 86.38 65.57 63.49 73.56 84.52

Tata Chemicals 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 79.75 84.52 85.47 85.77 84.72

Competitive Comparison of Tata Chemicals's E10

For the Chemicals subindustry, Tata Chemicals'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.


Tata Chemicals's Shiller PE Ratio Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Tata Chemicals's Shiller PE Ratio distribution charts can be found below:

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



Tata Chemicals 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, Tata Chemicals'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)
=-2.08/159.2043*159.2043
=-2.080

Current CPI (Dec. 2024) = 159.2043.

Tata Chemicals Quarterly Data

per share eps CPI Adj_EPS
201503 -2.910 97.163 -4.768
201506 5.790 99.841 9.233
201509 8.760 101.753 13.706
201512 7.790 102.901 12.052
201603 7.910 102.518 12.284
201606 8.090 105.961 12.155
201609 8.360 105.961 12.561
201612 10.340 105.196 15.649
201703 12.190 105.196 18.448
201706 6.980 107.109 10.375
201709 12.860 109.021 18.779
201712 29.790 109.404 43.350
201803 45.880 109.786 66.532
201806 8.090 111.317 11.570
201809 12.630 115.142 17.463
201812 8.610 115.142 11.905
201903 16.050 118.202 21.617
201906 6.020 120.880 7.929
201909 11.200 123.175 14.476
201912 5.740 126.235 7.239
202003 252.060 124.705 321.791
202006 0.520 127.000 0.652
202009 2.770 130.118 3.389
202012 6.310 130.889 7.675
202103 0.460 131.771 0.556
202106 11.300 134.084 13.417
202109 8.680 135.847 10.172
202112 12.190 138.161 14.047
202203 17.200 138.822 19.725
202206 23.120 142.347 25.858
202209 24.650 144.661 27.128
202212 15.350 145.763 16.765
202303 27.830 146.865 30.168
202306 20.880 150.280 22.120
202309 16.800 151.492 17.655
202312 6.200 152.924 6.455
202403 -33.360 153.035 -34.705
202406 5.890 155.789 6.019
202409 7.610 157.882 7.674
202412 -2.080 159.204 -2.080

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


Tata Chemicals  (NSE:TATACHEM) 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.

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

Shiller PE Ratio=Share Price/E10
=796.10/84.72
=9.40

* 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 Tata Chemicals was 17.54. The lowest was 2.54. And the median was 12.94.


Be Aware

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


Tata Chemicals E10 Related Terms

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


Tata Chemicals Business Description

Traded in Other Exchanges
Address
24, Homi Mody Street, Bombay House, Fort, Mumbai, MH, IND, 400001
Tata Chemicals Ltd manufactures and sells a variety of chemicals and agricultural products. The Company has 2 reportable segments which are the Company's strategic business units; Basic chemistry products: Soda Ash, Salt and other bulk chemicals; and Specialty products: Nutrition solutions and advanced materials.

Tata Chemicals Headlines

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