GURUFOCUS.COM » STOCK LIST » USA » NYSE » Caterpillar Inc (NYSE:CAT) » Definitions » E10
Switch to:

Caterpillar E10

: $7.54 (As of Jun. 2022)
View and export this data going back to 1929. Start your Free Trial

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.

Caterpillar's adjusted earnings per share data for the three months ended in Jun. 2022 was $3.130. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $7.54 for the trailing ten years ended in Jun. 2022.

As of today (2022-09-30), Caterpillar's current stock price is $166.43. Caterpillar's E10 for the quarter that ended in Jun. 2022 was $7.54. Caterpillar's Shiller PE Ratio of today is 22.07.

During the past 13 years, the highest Shiller PE Ratio of Caterpillar was 37.04. The lowest was 10.56. And the median was 20.13.


Caterpillar E10 Historical Data

The historical data trend for Caterpillar'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.

Caterpillar Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.76 5.21 6.23 6.37 7.12

Caterpillar Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 6.78 6.90 7.12 7.33 7.54

Competitive Comparison

For the Farm & Heavy Construction Machinery subindustry, Caterpillar's E10, along with its competitors' market caps and E10 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.

   

Caterpillar E10 Distribution

For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's E10 distribution charts can be found below:

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



Caterpillar 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, Caterpillar's adjusted earnings per share data for the three months ended in Jun. 2022 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2022 (Change)*Current CPI (Jun. 2022)
=3.13/125.0168*125.0168
=3.130

Current CPI (Jun. 2022) = 125.0168.

Caterpillar Quarterly Data

per share eps CPI Adj_EPS
201209 2.540 97.633 3.252
201212 1.040 96.871 1.342
201303 1.310 98.209 1.668
201306 1.450 98.518 1.840
201309 1.450 98.790 1.835
201312 1.540 98.326 1.958
201403 1.440 99.695 1.806
201406 1.570 100.560 1.952
201409 1.630 100.428 2.029
201412 1.230 99.070 1.552
201503 2.030 99.621 2.547
201506 1.310 100.684 1.627
201509 0.940 100.392 1.171
201512 -0.150 99.792 -0.188
201603 0.460 100.470 0.572
201606 0.930 101.688 1.143
201609 0.480 101.861 0.589
201612 -2.000 101.863 -2.455
201703 0.320 102.862 0.389
201706 1.350 103.349 1.633
201709 1.770 104.136 2.125
201712 -2.180 104.011 -2.620
201803 2.740 105.290 3.253
201806 2.820 106.317 3.316
201809 2.880 106.507 3.381
201812 1.780 105.998 2.099
201903 3.250 107.251 3.788
201906 2.830 108.070 3.274
201909 2.660 108.329 3.070
201912 1.970 108.420 2.272
202003 1.980 108.902 2.273
202006 0.840 108.767 0.965
202009 1.220 109.815 1.389
202012 1.420 109.897 1.615
202103 2.770 111.754 3.099
202106 2.560 114.631 2.792
202109 2.600 115.734 2.809
202112 3.910 117.630 4.156
202203 2.860 121.301 2.948
202206 3.130 125.017 3.130

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


Caterpillar  (NYSE:CAT) 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.

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

Shiller PE Ratio=Share Price/E10
=166.43/7.54
=22.07

* 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 Caterpillar was 37.04. The lowest was 10.56. And the median was 20.13.


Be Aware

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


Caterpillar E10 Related Terms

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


Caterpillar Business Description

Caterpillar logo
Address
510 Lake Cook Road, Suite 100, Deerfield, IL, USA, 60015
Caterpillar is an iconic manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment with over 13% market share in 2021. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Caterpillar Financial Services. Its products are available through a dealer network that covers the globe with over 2,000 branches maintained by 168 dealers. Caterpillar Financial Services provides retail financing for machinery and engines to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Caterpillar product sales.
Executives
Schaupp William E officer: Chief Accounting Officer PPG INDUSTRIES, INC. ONE PPG PLACE PITTSBURGH PA 15272
Maclennan David director 14701 CHARLSON ROAD EDEN PRAIRIE MN 55347
Johnson Gerald director 300 RENAISSANCE CENTER M/C: 482-C23-A68 DETROIT MI 48265
Fassino Anthony D. officer: Group President 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015
Marvel Gary Michael officer: Chief Accounting Officer 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015
Ainsworth William P officer: Group President 510 LAKE COOK ROAD SUITE 100 DEERFIELD X1 60015
Bonfield Andrew R J officer: Chief Financial Officer C/O BRISTOL MYERS SQUIBB CO 345 PARK AVE NEW YORK NY 10164
Younessi Ramin officer: Group President 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015
Creed Joseph E officer: Interim CFO 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015
Ayotte Kelly director C/O NEWS CORPORATION 1211 AVENUE OF THE AMERICAS NEW YORK NY 10036
Johnson Cheryl H officer: Chief Human Resources Officer 40 WESTMINSTER STREET PROVIDENCE RI 02903
Wilkins Rayford Jr director 208 S. AKARD ST. -- DALLAS TX 75202
Long Suzette M officer: Int. Executive Vice President 510 LAKE COOK ROAD SUITE 100 DEERFILED IL 60015
De Lange Bob officer: Group President 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015
Johnson Denise C officer: Group President C/O CATERPILLAR, INCORPORATED 901 WEST WASHINGTON, CV41110 EAST PEORIA IL 61630

Caterpillar Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)