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.
Illinois Tool Works's adjusted earnings per share data for the three months ended in Mar. 2020 was $1.770. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $6.03 for the trailing ten years ended in Mar. 2020.
As of today (2020-07-14), Illinois Tool Works's current stock price is $176.96. Illinois Tool Works's E10 for the quarter that ended in Mar. 2020 was $6.03. Illinois Tool Works's Shiller PE Ratio of today is 29.35.
During the past 13 years, the highestShiller PE Ratio of Illinois Tool Works was 37.42. The lowest was 16.31. And the median was 23.84.
Illinois Tool Works E10 Historical Data
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
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Illinois Tool Works Annual Data
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
E10
4.24
4.60
4.78
5.28
5.96
Illinois Tool Works Quarterly Data
Jun15
Sep15
Dec15
Mar16
Jun16
Sep16
Dec16
Mar17
Jun17
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
E10
5.55
5.72
5.87
5.96
6.03
Competitive Comparison
* 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.
Illinois Tool Works E10 Distribution
* The bar in red indicates where Illinois Tool Works's E10 falls into.
Illinois Tool Works 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, Illinois Tool Works's adjusted earnings per share data for the three months ended in Mar. 2020 was:
Add all the adjusted EPS together and divide 10 will get our e10.
Illinois Tool Works (NYSE:ITW) 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.
Illinois Tool Works's Shiller P/E Ratio of today is calculated as
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