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Volvo AB (OSTO:VOLV B) E10 : kr15.83 (As of Sep. 2024)


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What is Volvo AB 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.

Volvo AB's adjusted earnings per share data for the three months ended in Sep. 2024 was kr4.930. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is kr15.83 for the trailing ten years ended in Sep. 2024.

During the past 12 months, Volvo AB's average E10 Growth Rate was 17.50% per year. During the past 3 years, the average E10 Growth Rate was 19.40% per year. During the past 5 years, the average E10 Growth Rate was 19.20% per year. During the past 10 years, the average E10 Growth Rate was 12.50% 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 Volvo AB was 121.30% per year. The lowest was -17.40% per year. And the median was 4.90% per year.

As of today (2024-12-13), Volvo AB's current stock price is kr283.00. Volvo AB's E10 for the quarter that ended in Sep. 2024 was kr15.83. Volvo AB's Shiller PE Ratio of today is 17.88.

During the past 13 years, the highest Shiller PE Ratio of Volvo AB was 37.73. The lowest was 12.62. And the median was 20.76.


Volvo AB E10 Historical Data

The historical data trend for Volvo AB'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.

Volvo AB E10 Chart

Volvo AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.95 8.34 9.27 10.99 14.04

Volvo AB Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 13.47 14.04 14.73 15.34 15.83

Competitive Comparison of Volvo AB's E10

For the Farm & Heavy Construction Machinery subindustry, Volvo AB'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.


Volvo AB's Shiller PE Ratio Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Volvo AB's Shiller PE Ratio falls into.



Volvo AB 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, Volvo AB's adjusted earnings per share data for the three months ended in Sep. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=4.93/132.3043*132.3043
=4.930

Current CPI (Sep. 2024) = 132.3043.

Volvo AB Quarterly Data

per share eps CPI Adj_EPS
201412 -1.460 100.225 -1.927
201503 2.090 99.950 2.767
201506 2.540 99.995 3.361
201509 1.510 100.228 1.993
201512 1.270 100.276 1.676
201603 1.850 100.751 2.429
201606 0.970 101.019 1.270
201609 1.270 101.138 1.661
201612 2.370 102.022 3.073
201703 2.250 102.022 2.918
201706 2.860 102.752 3.683
201709 2.660 103.279 3.408
201712 2.300 103.793 2.932
201803 2.780 103.962 3.538
201806 4.530 104.875 5.715
201809 3.670 105.679 4.595
201812 1.260 105.912 1.574
201903 5.220 105.886 6.522
201906 5.470 106.742 6.780
201909 3.670 107.214 4.529
201912 3.280 107.766 4.027
202003 2.300 106.563 2.856
202006 -0.140 107.498 -0.172
202009 2.810 107.635 3.454
202012 4.530 108.296 5.534
202103 4.350 108.360 5.311
202106 4.380 108.928 5.320
202109 3.470 110.338 4.161
202112 3.930 112.486 4.622
202203 3.460 114.825 3.987
202206 5.140 118.384 5.744
202209 4.240 122.296 4.587
202212 3.250 126.365 3.403
202303 6.350 127.042 6.613
202306 5.300 129.407 5.419
202309 6.930 130.224 7.041
202312 5.920 131.912 5.938
202403 6.920 132.205 6.925
202406 7.650 132.716 7.626
202409 4.930 132.304 4.930

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


Volvo AB  (OSTO:VOLV B) 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.

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

Shiller PE Ratio=Share Price/E10
=283.00/15.83
=17.88

* 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 Volvo AB was 37.73. The lowest was 12.62. And the median was 20.76.


Be Aware

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


Volvo AB E10 Related Terms

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


Volvo AB Business Description

Address
Gropegardsgatan 2, Gothenburg, SWE, 417 15
Volvo AB drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing, and services that increase the customers' uptime and productivity. Its segments are Trucks, Construction Equipment, Buses, Volvo Penta, and Group Functions & Other.

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