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Caterpillar (WBO:CAT) E10 : €10.54 (As of Dec. 2024)


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What is Caterpillar 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.

Caterpillar's adjusted earnings per share data for the three months ended in Dec. 2024 was €5.520. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €10.54 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Caterpillar's average E10 Growth Rate was 18.40% per year. During the past 3 years, the average E10 Growth Rate was 15.60% per year. During the past 5 years, the average E10 Growth Rate was 12.30% per year. During the past 10 years, the average E10 Growth Rate was 7.00% 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 Caterpillar was 64.60% per year. The lowest was -5.80% per year. And the median was 13.30% per year.

As of today (2025-03-19), Caterpillar's current stock price is €308.50. Caterpillar's E10 for the quarter that ended in Dec. 2024 was €10.54. Caterpillar's Shiller PE Ratio of today is 29.27.

During the past 13 years, the highest Shiller PE Ratio of Caterpillar was 39.49. The lowest was 10.56. And the median was 26.29.


Caterpillar E10 Historical Data

The historical data trend for Caterpillar'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.

Caterpillar E10 Chart

Caterpillar 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 5.09 6.29 7.26 8.44 10.54

Caterpillar 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 8.44 9.10 9.50 9.46 10.54

Competitive Comparison of Caterpillar's E10

For the Farm & Heavy Construction Machinery subindustry, Caterpillar'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.


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

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

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



Caterpillar 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, Caterpillar'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)
=5.52/133.1571*133.1571
=5.520

Current CPI (Dec. 2024) = 133.1571.

Caterpillar Quarterly Data

per share eps CPI Adj_EPS
201503 1.876 99.621 2.508
201506 1.167 100.684 1.543
201509 0.838 100.392 1.112
201512 -0.138 99.792 -0.184
201603 0.413 100.470 0.547
201606 0.828 101.688 1.084
201609 0.428 101.861 0.560
201612 -1.896 101.863 -2.478
201703 0.299 102.862 0.387
201706 1.202 103.349 1.549
201709 1.485 104.136 1.899
201712 -1.842 104.011 -2.358
201803 2.222 105.290 2.810
201806 2.414 106.317 3.023
201809 2.468 106.507 3.086
201812 1.565 105.998 1.966
201903 2.876 107.251 3.571
201906 2.505 108.070 3.087
201909 2.415 108.329 2.968
201912 1.773 108.420 2.178
202003 1.792 108.902 2.191
202006 0.746 108.767 0.913
202009 1.036 109.815 1.256
202012 1.167 109.897 1.414
202103 2.327 111.754 2.773
202106 2.125 114.631 2.468
202109 2.210 115.734 2.543
202112 3.460 117.630 3.917
202203 2.597 121.301 2.851
202206 2.961 125.017 3.154
202209 3.909 125.227 4.157
202212 2.634 125.222 2.801
202303 3.493 127.348 3.652
202306 5.233 128.729 5.413
202309 5.107 129.860 5.237
202312 4.842 129.419 4.982
202403 5.290 131.776 5.345
202406 5.091 132.554 5.114
202409 4.559 133.029 4.563
202412 5.520 133.157 5.520

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


Caterpillar  (WBO:CAT) 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.

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

Shiller PE Ratio=Share Price/E10
=308.50/10.54
=29.27

* 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 Caterpillar was 39.49. The lowest was 10.56. And the median was 26.29.


Be Aware

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


Caterpillar E10 Related Terms

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


Caterpillar Business Description

Address
5205 N. O\'Connor Boulevard, Suite 100, Irving, TX, USA, 75039
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Its reporting segments are: construction industries (40% sales/47% operating profit, or OP), resource industries (20% sales/19% OP), and energy & transportation (40% sales/34% OP). Market share approaches 20% across many products. Caterpillar operates a captive finance subsidiary to facilitate sales. The firm has global reach (46% US sales/54% ex-US). Construction skews more domestic, while the other divisions are more geographically diversified. An independent network of 156 dealers operates approximately 2,800 facilities, giving Caterpillar reach into about 190 countries for sales and support services.