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Hanwha (XKRX:000880) E10 : ₩4,311.95 (As of Mar. 2024)


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What is Hanwha 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.

Hanwha's adjusted earnings per share data for the three months ended in Mar. 2024 was ₩-1,594.240. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₩4,311.95 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Hanwha's average E10 Growth Rate was -5.10% per year. During the past 3 years, the average E10 Growth Rate was 27.30% per year. During the past 5 years, the average E10 Growth Rate was 12.60% 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 Hanwha was 27.30% per year. The lowest was -8.20% per year. And the median was 0.90% per year.

As of today (2024-05-26), Hanwha's current stock price is ₩25550.00. Hanwha's E10 for the quarter that ended in Mar. 2024 was ₩4,311.95. Hanwha's Shiller PE Ratio of today is 5.93.

During the past 13 years, the highest Shiller PE Ratio of Hanwha was 16.84. The lowest was 4.87. And the median was 9.92.


Hanwha E10 Historical Data

The historical data trend for Hanwha'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.

Hanwha E10 Chart

Hanwha Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2,300.84 2,172.34 3,118.78 4,232.66 4,481.23

Hanwha Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 4,541.34 4,546.11 4,547.87 4,481.23 4,311.95

Competitive Comparison of Hanwha's E10

For the Conglomerates subindustry, Hanwha'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.


Hanwha's Shiller PE Ratio Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Hanwha's Shiller PE Ratio distribution charts can be found below:

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



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

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=-1594.24/118.8477*118.8477
=-1,594.240

Current CPI (Mar. 2024) = 118.8477.

Hanwha Quarterly Data

per share eps CPI Adj_EPS
201406 -4,230.870 99.353 -5,061.037
201409 1,058.390 99.608 1,262.822
201412 -1,597.870 99.098 -1,916.317
201503 317.606 99.720 378.527
201506 197.721 100.050 234.869
201509 -1,073.600 100.110 -1,274.547
201512 -3,108.070 100.220 -3,685.761
201603 2,107.830 100.560 2,491.157
201606 2,475.540 100.790 2,919.062
201609 1,536.000 101.460 1,799.232
201612 188.000 101.560 220.002
201703 3,839.000 102.850 4,436.133
201706 3,053.000 102.610 3,536.127
201709 474.000 103.490 544.341
201712 -1,748.000 102.990 -2,017.145
201803 3,864.000 104.100 4,411.407
201806 2,266.000 104.130 2,586.276
201809 2,440.000 105.650 2,744.803
201812 -2,030.000 104.350 -2,312.035
201903 1,491.000 104.490 1,695.874
201906 639.000 104.880 724.101
201909 1,537.000 105.200 1,736.397
201912 -2,617.000 105.120 -2,958.756
202003 1,903.000 105.540 2,142.952
202006 1,255.000 104.870 1,422.274
202009 1,759.000 106.200 1,968.485
202012 -2,364.000 105.765 -2,656.407
202103 3,275.000 107.357 3,625.525
202106 2,635.000 107.579 2,911.022
202109 2,511.000 108.759 2,743.920
202112 2,112.000 109.676 2,288.609
202203 2,273.000 111.806 2,416.161
202206 8,446.000 114.083 8,798.764
202209 4,835.000 114.831 5,004.112
202212 -1,570.000 115.200 -1,619.710
202303 3,919.000 116.550 3,996.274
202306 281.000 117.140 285.097
202309 115.000 119.111 114.746
202312 -1,223.600 118.848 -1,223.600
202403 -1,594.240 118.848 -1,594.240

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


Hanwha  (XKRX:000880) 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.

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

Shiller PE Ratio=Share Price/E10
=25550.00/4311.95
=5.93

* 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 Hanwha was 16.84. The lowest was 4.87. And the median was 9.92.


Be Aware

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


Hanwha E10 Related Terms

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


Hanwha (XKRX:000880) Business Description

Traded in Other Exchanges
Address
1 Janggyo-dong, Jung-gu, Seoul, KOR, 100-797
Hanwha Corp is a global manufacturing and trading company. The company operates in four business areas - Explosives, Defense, Trading, and Machinery. Explosives Division offers a wide range of explosives products and services via three business units: chemical unit, cladding unit, and the fireworks promotion unit. Trading Division engages in trading various products ranging from raw materials to consumer goods, wood pallet manufacturing, landfill gas generation, solar power systems, and other new and renewable energy businesses. Machinery Division offers machine tools, factory automation and plant and machinery. Under its Defense Division, it offers precision-guided munitions, advanced ammunition, and unmanned systems and underwater surveillance equipment.

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