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Linamar (TSX:LNR) E10 : C$7.92 (As of Dec. 2024)


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What is Linamar 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.

Linamar's adjusted earnings per share data for the three months ended in Dec. 2024 was C$-3.790. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is C$7.92 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Linamar's average E10 Growth Rate was -0.80% per year. During the past 3 years, the average E10 Growth Rate was 6.50% per year. During the past 5 years, the average E10 Growth Rate was 8.60% per year. During the past 10 years, the average E10 Growth Rate was 15.40% 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 Linamar was 26.00% per year. The lowest was -5.90% per year. And the median was 11.10% per year.

As of today (2025-03-19), Linamar's current stock price is C$52.31. Linamar's E10 for the quarter that ended in Dec. 2024 was C$7.92. Linamar's Shiller PE Ratio of today is 6.60.

During the past 13 years, the highest Shiller PE Ratio of Linamar was 41.46. The lowest was 5.05. And the median was 10.48.


Linamar E10 Historical Data

The historical data trend for Linamar'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.

Linamar E10 Chart

Linamar Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.82 6.56 7.37 7.98 7.92

Linamar Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 7.98 8.19 8.38 8.44 7.92

Competitive Comparison of Linamar's E10

For the Auto Parts subindustry, Linamar'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.


Linamar's Shiller PE Ratio Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Linamar's Shiller PE Ratio distribution charts can be found below:

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



Linamar 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, Linamar's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=-3.79/127.3637*127.3637
=-3.790

Current CPI (Dec. 2024) = 127.3637.

Linamar Quarterly Data

per share eps CPI Adj_EPS
201503 1.730 99.789 2.208
201506 1.830 100.500 2.319
201509 1.640 100.421 2.080
201512 1.450 99.947 1.848
201603 1.920 101.054 2.420
201606 2.390 102.002 2.984
201609 1.860 101.765 2.328
201612 1.760 101.449 2.210
201703 2.200 102.634 2.730
201706 2.450 103.029 3.029
201709 1.620 103.345 1.997
201712 2.040 103.345 2.514
201803 2.370 105.004 2.875
201806 2.980 105.557 3.596
201809 1.710 105.636 2.062
201812 1.890 105.399 2.284
201903 2.000 106.979 2.381
201906 2.280 107.690 2.697
201909 1.500 107.611 1.775
201912 0.760 107.769 0.898
202003 1.200 107.927 1.416
202006 -0.580 108.401 -0.681
202009 1.920 108.164 2.261
202012 1.730 108.559 2.030
202103 2.340 110.298 2.702
202106 1.650 111.720 1.881
202109 1.660 112.905 1.873
202112 0.760 113.774 0.851
202203 1.470 117.646 1.591
202206 1.610 120.806 1.697
202209 2.100 120.648 2.217
202212 1.500 120.964 1.579
202303 1.900 122.702 1.972
202306 2.190 124.203 2.246
202309 2.380 125.230 2.421
202312 1.690 125.072 1.721
202403 2.900 126.258 2.925
202406 2.820 127.522 2.817
202409 2.240 127.285 2.241
202412 -3.790 127.364 -3.790

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


Linamar  (TSX:LNR) 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.

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

Shiller PE Ratio=Share Price/E10
=52.31/7.92
=6.60

* 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 Linamar was 41.46. The lowest was 5.05. And the median was 10.48.


Be Aware

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


Linamar E10 Related Terms

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


Linamar Business Description

Traded in Other Exchanges
Address
287 Speedvale Avenue West, Guelph, ON, CAN, N1H 1C5
Linamar Corp is a diversified global manufacturing company of highly engineered products. The Company's Industrial segment operates the Skyjack and MacDon brands, It manufactures products for the Aerial Work Platform and Agricultural industries, respectively. The Mobility segment features vertically integrated operations to combine expertise in light metal casting, forging, machining and assembly of components and systems for electric and traditional vehicle applications. In addition, McLaren Engineering and eLIN Product Solutions Group provide design, development, and testing services for the Mobility segment.
Executives
Mark Stoddart Director, Senior Officer
Linda Hasenfratz Director, Senior Officer
Linamar Corporation Issuer
Michael Willard Russell Senior Officer
Dale Schneider Senior Officer
Elliot Burger Deemed Insider - 6 Months before becoming Insider
Christopher John Merchant Senior Officer
Roxanne Phyllis Rose Senior Officer
Ronald Dale Bennett Senior Officer
Brian Wade Senior Officer
Alexander Drolc Senior Officer
Geoffrey Joseph Gray Deemed Insider - 6 Months before becoming Insider
Roger Fulton Senior Officer
Steven Keith Bowman Senior Officer
Kiera Katherine Andrew Young Senior Officer

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