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Pfizer Inc  (NYSE:PFE) E10: $1.66 (As of Sep. 2017)

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.

Pfizer Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.470. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.66 for the trailing ten years ended in Sep. 2017.

As of today, Pfizer Inc's current stock price is $35.43. Pfizer Inc's E10 for the quarter that ended in Sep. 2017 was $1.66. Pfizer Inc's Shiller PE Ratio of today is 21.34.

During the past 13 years, the highest Shiller PE Ratio of Pfizer Inc was 22.65. The lowest was 9.12. And the median was 16.74.


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.

Pfizer Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.51 1.78 1.73 1.73 1.56

Pfizer Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 1.70 1.56 1.57 1.61 1.66

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.


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, Pfizer Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=0.47/246.819*246.819
=0.470

Current CPI (Sep. 2017) = 246.819.

Pfizer Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.390 210.036 0.458
200803 0.410 213.528 0.474
200806 0.410 218.815 0.462
200809 0.340 218.783 0.384
200812 0.040 210.228 0.047
200903 0.400 212.709 0.464
200906 0.340 215.693 0.389
200909 0.430 215.969 0.491
200912 0.060 215.949 0.069
201003 0.250 217.631 0.284
201006 0.310 217.965 0.351
201009 0.110 218.439 0.124
201012 0.360 219.179 0.405
201103 0.280 223.467 0.309
201106 0.330 225.722 0.361
201109 0.480 226.889 0.522
201112 0.190 225.672 0.208
201203 0.240 229.392 0.258
201206 0.430 229.478 0.462
201209 0.430 231.407 0.459
201212 0.850 229.601 0.914
201303 0.380 232.773 0.403
201306 1.980 233.504 2.093
201309 0.390 234.149 0.411
201312 0.420 233.049 0.445
201403 0.360 236.293 0.376
201406 0.450 238.343 0.466
201409 0.420 238.031 0.436
201412 0.190 234.812 0.200
201503 0.380 236.119 0.397
201506 0.420 238.638 0.434
201509 0.340 237.945 0.353
201512 -0.030 236.525 -0.031
201603 0.490 238.132 0.508
201606 0.330 241.018 0.338
201609 0.220 241.428 0.225
201612 0.120 241.432 0.123
201703 0.510 243.801 0.516
201706 0.510 244.955 0.514
201709 0.470 246.819 0.470

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.

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

Shiller PE Ratio=Share Price/E10
=35.43/1.66
=21.34

* 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 Pfizer Inc was 22.65. The lowest was 9.12. And the median was 16.74.


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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