USD 7.90 (NYSE:BRK.B). Berkshire Hathaway E10 description, competitive comparison data, historical data and more." />Berkshire Hathaway E10 (NYSE:BRK.B)
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Berkshire Hathaway Inc  (NYSE:BRK.B) E10: USD 7.90 (As of Mar. 2018)

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.

Berkshire Hathaway Inc's adjusted earnings per share data for the three months ended in Mar. 2018 was USD -0.461. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is USD 7.90 for the trailing ten years ended in Mar. 2018.

As of today, Berkshire Hathaway Inc's current stock price is USD 190.35. Berkshire Hathaway Inc's E10 for the quarter that ended in Mar. 2018 was USD 7.90. Berkshire Hathaway Inc's Shiller PE Ratio of today is 24.09.

During the past 13 years, the highest Shiller PE Ratio of Berkshire Hathaway Inc was 33.72. The lowest was 16.47. And the median was 23.23.


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.

Berkshire Hathaway Inc Annual Data

Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.44 6.04 6.57 7.83

Berkshire Hathaway Inc Quarterly Data

Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
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 6.66 6.65 6.67 7.83 7.90

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.


Berkshire Hathaway Inc Distribution

* The bar in red indicates where Berkshire Hathaway Inc's E10 falls into.



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, Berkshire Hathaway Inc's adjusted earnings per share data for the three months ended in Mar. 2018 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2018 (Change)*Current CPI (Mar. 2018)
=-0.461/249.554*249.554
=-0.461

Current CPI (Mar. 2018) = 249.554.

Berkshire Hathaway Inc Quarterly Data

per share eps CPI Adj_EPS
200806 1.239 218.815 1.413
200809 0.455 218.783 0.519
200812 0.050 210.228 0.059
200903 -0.660 212.709 -0.774
200906 1.415 215.693 1.637
200909 1.391 215.969 1.607
200912 1.313 215.949 1.517
201003 1.515 217.631 1.737
201006 0.797 217.965 0.913
201009 1.209 218.439 1.381
201012 1.775 219.179 2.021
201103 0.611 223.467 0.682
201106 1.381 225.722 1.527
201109 0.920 226.889 1.012
201112 1.231 225.672 1.361
201203 1.311 229.392 1.426
201206 1.255 229.478 1.365
201209 1.582 231.407 1.706
201212 1.838 229.601 1.998
201303 1.985 232.773 2.128
201306 1.842 233.504 1.969
201309 2.049 234.149 2.184
201312 2.024 233.049 2.167
201403 1.908 236.293 2.015
201406 2.593 238.343 2.715
201409 1.874 238.031 1.965
201412 1.687 234.812 1.793
201503 2.095 236.119 2.214
201506 1.628 238.638 1.702
201509 3.825 237.945 4.012
201512 2.222 236.525 2.344
201603 2.267 238.132 2.376
201606 2.028 241.018 2.100
201609 2.919 241.428 3.017
201612 2.549 241.432 2.635
201703 1.646 243.801 1.685
201706 1.728 244.955 1.760
201709 1.649 246.819 1.667
201712 13.195 246.524 13.357
201803 -0.461 249.554 -0.461

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.

Berkshire Hathaway Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=190.35/7.90
=24.09

* 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 Berkshire Hathaway Inc was 33.72. The lowest was 16.47. And the median was 23.23.


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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