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Deere (XTER:DCO) E10 : €16.07 (As of Jan. 2025)


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What is Deere 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.

Deere's adjusted earnings per share data for the three months ended in Jan. 2025 was €3.082. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €16.07 for the trailing ten years ended in Jan. 2025.

During the past 12 months, Deere's average E10 Growth Rate was 11.10% per year. During the past 3 years, the average E10 Growth Rate was 18.90% per year. During the past 5 years, the average E10 Growth Rate was 17.90% per year. During the past 10 years, the average E10 Growth Rate was 11.30% 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 Deere was 54.00% per year. The lowest was -0.80% per year. And the median was 12.30% per year.

As of today (2025-03-04), Deere's current stock price is €452.95. Deere's E10 for the quarter that ended in Jan. 2025 was €16.07. Deere's Shiller PE Ratio of today is 28.19.

During the past 13 years, the highest Shiller PE Ratio of Deere was 45.60. The lowest was 12.25. And the median was 23.70.


Deere E10 Historical Data

The historical data trend for Deere'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.

Deere E10 Chart

Deere Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.96 8.53 11.91 13.75 15.11

Deere Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 13.85 14.81 15.03 15.11 16.07

Competitive Comparison of Deere's E10

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


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

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

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



Deere 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, Deere's adjusted earnings per share data for the three months ended in Jan. 2025 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jan. 2025 (Change)*Current CPI (Jan. 2025)
=3.082/134.0288*134.0288
=3.082

Current CPI (Jan. 2025) = 134.0288.

Deere Quarterly Data

per share eps CPI Adj_EPS
201504 1.876 99.824 2.519
201507 1.391 100.691 1.852
201510 0.962 100.346 1.285
201601 0.737 99.957 0.988
201604 1.374 100.947 1.824
201607 1.403 101.524 1.852
201610 0.817 101.988 1.074
201701 0.583 102.456 0.763
201704 2.333 103.167 3.031
201707 1.708 103.278 2.217
201710 1.336 104.070 1.721
201801 -1.361 104.578 -1.744
201804 2.991 105.708 3.792
201807 2.380 106.324 3.000
201810 2.105 106.695 2.644
201901 1.349 106.200 1.702
201904 3.133 107.818 3.895
201907 2.507 108.250 3.104
201910 2.052 108.577 2.533
202001 1.469 108.841 1.809
202004 1.941 108.173 2.405
202007 2.236 109.318 2.741
202010 2.032 109.861 2.479
202101 3.177 110.364 3.858
202104 4.748 112.673 5.648
202107 4.501 115.183 5.237
202110 3.551 116.696 4.078
202201 2.581 118.619 2.916
202204 6.306 121.978 6.929
202207 6.055 125.002 6.492
202210 7.552 125.734 8.050
202301 6.078 126.223 6.454
202304 8.801 127.992 9.216
202307 9.221 128.974 9.582
202310 7.822 129.810 8.076
202401 5.719 130.124 5.891
202404 7.950 132.289 8.055
202407 5.799 132.708 5.857
202410 4.177 133.182 4.204
202501 3.082 134.029 3.082

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


Deere  (XTER:DCO) 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.

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

Shiller PE Ratio=Share Price/E10
=452.95/16.07
=28.19

* 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 Deere was 45.60. The lowest was 12.25. And the median was 23.70.


Be Aware

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


Deere E10 Related Terms

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


Deere Business Description

Address
One John Deere Place, Moline, IL, USA, 61265
Deere is the world's leading manufacturer of agricultural equipment and a major producer of construction machinery. The company is divided into four reporting segments: production & precision agriculture (PPA), small agriculture & turf (SAT), construction & forestry (CF), and financial services (FS), its captive finance subsidiary. The core PPA business is the largest contributor to sales and profits by far. Geographically, Deere sales are 60% US/Canada, 17% Europe, 14% Latin America, and 9% rest of world. Deere goes to market through a robust dealer network that includes over 2,000 dealer locations in North America with reach into over 100 countries. John Deere financial provides retail financing for machinery to its customers and wholesale financing for dealers.