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Lockheed Martin Corp  (NYSE:LMT) E10: $11.84 (As of Mar. 2019)

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.

Lockheed Martin Corp's adjusted earnings per share data for the three months ended in Mar. 2019 was $5.990. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $11.84 for the trailing ten years ended in Mar. 2019.

As of today, Lockheed Martin Corp's current stock price is $350.14. Lockheed Martin Corp's E10 for the quarter that ended in Mar. 2019 was $11.84. Lockheed Martin Corp's Shiller PE Ratio of today is 29.57.

During the past 13 years, the highest Shiller PE Ratio of Lockheed Martin Corp was 41.82. The lowest was 12.78. And the median was 22.59.


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.

Lockheed Martin Corp 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 8.17 8.90 10.12 10.18 11.22

Lockheed Martin Corp Quarterly Data

Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
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 10.58 10.84 11.13 11.22 11.84

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.


Lockheed Martin Corp Distribution

* The bar in red indicates where Lockheed Martin Corp'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, Lockheed Martin Corp's adjusted earnings per share data for the three months ended in Mar. 2019 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2019 (Change)*Current CPI (Mar. 2019)
=5.99/254.202*254.202
=5.990

Current CPI (Mar. 2019) = 254.202.

Lockheed Martin Corp Quarterly Data

per share eps CPI Adj_EPS
200906 1.880 215.693 2.216
200909 2.070 215.969 2.436
200912 2.030 215.949 2.390
201003 1.410 217.631 1.647
201006 2.220 217.965 2.589
201009 1.540 218.439 1.792
201012 2.640 219.179 3.062
201103 1.500 223.467 1.706
201106 2.140 225.722 2.410
201109 2.100 226.889 2.353
201112 2.080 225.672 2.343
201203 2.030 229.392 2.250
201206 2.380 229.478 2.636
201209 2.210 231.407 2.428
201212 1.730 229.601 1.915
201303 2.330 232.773 2.544
201306 2.640 233.504 2.874
201309 2.660 234.149 2.888
201312 1.500 233.049 1.636
201403 2.870 236.293 3.088
201406 2.760 238.343 2.944
201409 2.760 238.031 2.948
201412 2.820 234.812 3.053
201503 2.740 236.119 2.950
201506 2.940 238.638 3.132
201509 2.770 237.945 2.959
201512 3.010 236.525 3.235
201603 2.910 238.132 3.106
201606 3.320 241.018 3.502
201609 7.930 241.428 8.350
201612 3.350 241.432 3.527
201703 2.690 243.801 2.805
201706 3.280 244.955 3.404
201709 3.320 246.819 3.419
201712 -2.250 246.524 -2.320
201803 4.020 249.554 4.095
201806 4.050 251.989 4.086
201809 5.140 252.439 5.176
201812 4.390 251.233 4.442
201903 5.990 254.202 5.990

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.

Lockheed Martin Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=350.14/11.84
=29.57

* 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 Lockheed Martin Corp was 41.82. The lowest was 12.78. And the median was 22.59.


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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