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Moodys (WBO:MOCO) E10 : €8.18 (As of Dec. 2024)


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What is Moodys 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.

Moodys's adjusted earnings per share data for the three months ended in Dec. 2024 was €2.072. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €8.18 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Moodys's average E10 Growth Rate was 9.60% per year. During the past 3 years, the average E10 Growth Rate was 10.20% per year. During the past 5 years, the average E10 Growth Rate was 14.50% per year. During the past 10 years, the average E10 Growth Rate was 13.20% 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 Moodys was 19.40% per year. The lowest was 4.70% per year. And the median was 11.00% per year.

As of today (2025-03-03), Moodys's current stock price is €482.70. Moodys's E10 for the quarter that ended in Dec. 2024 was €8.18. Moodys's Shiller PE Ratio of today is 59.01.

During the past 13 years, the highest Shiller PE Ratio of Moodys was 66.04. The lowest was 26.72. And the median was 46.75.


Moodys E10 Historical Data

The historical data trend for Moodys'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.

Moodys E10 Chart

Moodys 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 4.05 5.76 6.79 7.06 8.18

Moodys 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 7.06 7.58 7.76 7.63 8.18

Competitive Comparison of Moodys's E10

For the Financial Data & Stock Exchanges subindustry, Moodys'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.


Moodys's Shiller PE Ratio Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Moodys's Shiller PE Ratio distribution charts can be found below:

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



Moodys 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, Moodys'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)
=2.072/133.1571*133.1571
=2.072

Current CPI (Dec. 2024) = 133.1571.

Moodys Quarterly Data

per share eps CPI Adj_EPS
201503 1.026 99.621 1.371
201506 1.140 100.684 1.508
201509 1.016 100.392 1.348
201512 1.001 99.792 1.336
201603 0.835 100.470 1.107
201606 1.157 101.688 1.515
201609 1.167 101.861 1.526
201612 -2.133 101.863 -2.788
201703 1.664 102.862 2.154
201706 1.433 103.349 1.846
201709 1.368 104.136 1.749
201712 0.110 104.011 0.141
201803 1.557 105.290 1.969
201806 1.661 106.317 2.080
201809 1.363 106.507 1.704
201812 1.134 105.998 1.425
201903 1.708 107.251 2.121
201906 1.434 108.070 1.767
201909 1.807 108.329 2.221
201912 1.692 108.420 2.078
202003 2.326 108.902 2.844
202006 2.389 108.767 2.925
202009 2.097 109.815 2.543
202012 1.365 109.897 1.654
202103 3.276 111.754 3.903
202106 2.548 114.631 2.960
202109 2.151 115.734 2.475
202112 2.018 117.630 2.284
202203 2.433 121.301 2.671
202206 1.674 125.017 1.783
202209 1.667 125.227 1.773
202212 1.265 125.222 1.345
202303 2.540 127.348 2.656
202306 1.892 128.729 1.957
202309 1.977 129.860 2.027
202312 1.696 129.419 1.745
202403 2.898 131.776 2.928
202406 2.806 132.554 2.819
202409 2.640 133.029 2.643
202412 2.072 133.157 2.072

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


Moodys  (WBO:MOCO) 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.

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

Shiller PE Ratio=Share Price/E10
=482.70/8.18
=59.01

* 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 Moodys was 66.04. The lowest was 26.72. And the median was 46.75.


Be Aware

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


Moodys E10 Related Terms

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


Moodys Business Description

Traded in Other Exchanges
Address
7 World Trade Center at 250 Greenwich Street, New York, NY, USA, 10007
Moody's, along with S&P Ratings, is a leading provider of credit ratings on fixed-income securities. The ratings segment, Moody's Investors Service, includes corporates, structured finance, financial institutions, and public finance ratings. MIS represents a majority of the firm's profit and about half the firm's revenue. The other segment, Moody's Analytics, consists of decision solutions, research and insights, and data and information.

Moodys Headlines

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