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Thermo Fisher Scientific Inc  (NYSE:TMO) E10: $3.91 (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.

Thermo Fisher Scientific Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.340. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.91 for the trailing ten years ended in Sep. 2017.

As of today, Thermo Fisher Scientific Inc's current stock price is $192.75. Thermo Fisher Scientific Inc's E10 for the quarter that ended in Sep. 2017 was $3.91. Thermo Fisher Scientific Inc's Shiller PE Ratio of today is 49.30.

During the past 13 years, the highest Shiller PE Ratio of Thermo Fisher Scientific Inc was 63.12. The lowest was 20.78. And the median was 42.01.


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.

Thermo Fisher Scientific 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 2.25 2.49 2.69 3.04 3.51

Thermo Fisher Scientific 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 3.34 3.51 3.64 3.79 3.91

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, Thermo Fisher Scientific 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)
=1.34/246.819*246.819
=1.340

Current CPI (Sep. 2017) = 246.819.

Thermo Fisher Scientific Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.550 210.036 0.646
200803 0.530 213.528 0.613
200806 0.570 218.815 0.643
200809 0.500 218.783 0.564
200812 0.670 210.228 0.787
200903 0.350 212.709 0.406
200906 0.490 215.693 0.561
200909 0.530 215.969 0.606
200912 0.650 215.949 0.743
201003 0.560 217.631 0.635
201006 0.570 217.965 0.645
201009 0.660 218.439 0.746
201012 0.740 219.179 0.833
201103 0.640 223.467 0.707
201106 1.360 225.722 1.487
201109 0.690 226.889 0.751
201112 0.770 225.672 0.842
201203 0.750 229.392 0.807
201206 0.630 229.478 0.678
201209 0.790 231.407 0.843
201212 1.030 229.601 1.107
201303 0.930 232.773 0.986
201306 0.760 233.504 0.803
201309 0.860 234.149 0.907
201312 0.920 233.049 0.974
201403 1.360 236.293 1.421
201406 0.690 238.343 0.715
201409 1.170 238.031 1.213
201412 1.490 234.812 1.566
201503 0.960 236.119 1.004
201506 1.270 238.638 1.314
201509 1.180 237.945 1.224
201512 1.500 236.525 1.565
201603 1.010 238.132 1.047
201606 1.300 241.018 1.331
201609 1.190 241.428 1.217
201612 1.590 241.432 1.625
201703 1.400 243.801 1.417
201706 1.560 244.955 1.572
201709 1.340 246.819 1.340

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.

Thermo Fisher Scientific Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=192.75/3.91
=49.30

* 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 Thermo Fisher Scientific Inc was 63.12. The lowest was 20.78. And the median was 42.01.


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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