USD 5.54 as of today(2019-10-22). POSCO E10 explanation, calculation, historical data and more" />POSCO E10 | PKX - GuruFocus.com
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POSCO E10

: USD 5.54 (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.

POSCO's adjusted earnings per share data for the three months ended in Jun. 2019 was USD 1.623. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is USD 5.54 for the trailing ten years ended in Jun. 2019.

As of today (2019-10-22), POSCO's current stock price is USD 47.84. POSCO's E10 for the quarter that ended in Jun. 2019 was USD 5.54. POSCO's Shiller PE Ratio of today is 8.64.

During the past 13 years, the highest Shiller PE Ratio of POSCO was 20.63. The lowest was 5.62. And the median was 10.10.


POSCO 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.

POSCO 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 7.60 6.09 5.61 6.30 5.54

POSCO 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 6.01 6.01 5.54 5.49 5.54

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.


POSCO E10 Distribution

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



POSCO 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, POSCO'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)
=1.62338146397/256.143*256.143
=1.623

Current CPI (Jun. 2019) = 256.143.

POSCO Quarterly Data

per share eps CPI Adj_EPS
200909 3.076 215.969 3.649
200912 3.687 215.949 4.373
201003 3.897 217.631 4.586
201006 2.951 217.965 3.468
201009 2.985 218.439 3.500
201012 1.617 219.179 1.889
201103 3.153 223.467 3.614
201106 3.963 225.722 4.497
201109 0.655 226.889 0.739
201112 2.840 225.672 3.224
201203 1.809 229.392 2.020
201206 1.417 229.478 1.581
201209 2.106 231.407 2.331
201212 1.708 229.601 1.906
201303 0.816 232.773 0.898
201306 0.708 233.504 0.777
201309 1.661 234.149 1.817
201312 0.785 233.049 0.863
201403 0.181 236.293 0.196
201406 1.547 238.343 1.663
201409 0.694 238.031 0.747
201412 -0.553 234.812 -0.603
201503 0.928 236.119 1.007
201506 0.533 238.638 0.572
201509 -1.451 237.945 -1.562
201512 0.449 236.525 0.486
201603 0.929 238.132 0.999
201606 0.761 241.018 0.808
201609 1.515 241.428 1.607
201612 0.395 241.432 0.419
201703 2.322 243.801 2.440
201706 1.395 244.955 1.459
201709 2.378 246.819 2.468
201712 1.485 246.524 1.543
201803 2.879 249.554 2.955
201806 1.537 251.989 1.563
201809 2.840 252.439 2.882
201812 -2.361 251.233 -2.407
201903 2.040 254.202 2.055
201906 1.623 256.143 1.623

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


POSCO  (NYSE:PKX) 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.

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

Shiller PE Ratio=Share Price/E10
=47.84/5.54
=8.64

* 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 POSCO was 20.63. The lowest was 5.62. And the median was 10.10.


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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