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Aditya Birla Capital (BOM:540691) E10 : ₹8.23 (As of Mar. 2024)


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What is Aditya Birla Capital 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.

Aditya Birla Capital's adjusted earnings per share data for the fiscal year that ended in Mar. 2024 was ₹12.950. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₹8.23 for the trailing ten years ended in Mar. 2024.

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.

As of today (2024-05-18), Aditya Birla Capital's current stock price is ₹ 225.65. Aditya Birla Capital's E10 for the fiscal year that ended in Mar. 2024 was ₹8.23. Aditya Birla Capital's Shiller PE Ratio of today is 27.42.

During the past 10 years, the highest Shiller PE Ratio of Aditya Birla Capital was 28.09. The lowest was 24.40. And the median was 26.28.


Aditya Birla Capital E10 Historical Data

The historical data trend for Aditya Birla Capital'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.

Aditya Birla Capital E10 Chart

Aditya Birla Capital Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 8.23

Aditya Birla Capital 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 - - - - 8.23

Competitive Comparison of Aditya Birla Capital's E10

For the Financial Conglomerates subindustry, Aditya Birla Capital'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.


Aditya Birla Capital's Shiller PE Ratio Distribution in the Diversified Financial Services Industry

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

* The bar in red indicates where Aditya Birla Capital's Shiller PE Ratio falls into.



Aditya Birla Capital 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, Aditya Birla Capital's adjusted earnings per share data for the fiscal year that ended in Mar. 2024 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=12.95/153.0345*153.0345
=12.950

Current CPI (Mar. 2024) = 153.0345.

Aditya Birla Capital Annual Data

per_share_eps CPI Adj_EPS
201503 2.872 97.163 4.523
201603 4.568 102.518 6.819
201703 6.350 105.196 9.238
201803 3.530 109.786 4.921
201903 3.950 118.202 5.114
202003 4.060 124.705 4.982
202103 4.660 131.771 5.412
202203 7.050 138.822 7.772
202303 19.770 146.865 20.601
202403 12.950 153.035 12.950

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


Aditya Birla Capital  (BOM:540691) 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.

Aditya Birla Capital's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=225.65/8.23
=27.42

* 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 10 years, the highest Shiller P/E Ratio of Aditya Birla Capital was 28.09. The lowest was 24.40. And the median was 26.28.


Be Aware

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


Aditya Birla Capital E10 Related Terms

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


Aditya Birla Capital (BOM:540691) Business Description

Traded in Other Exchanges
Address
841, Senapati Bapat Marg, Elphinstone Road, One World Centre, Tower 1, 18th Floor, Jupiter Mills Compound, Mumbai, MH, IND, 400 013
Aditya Birla Capital Ltd is a financial service provider. The company's products include Non-Bank Financial Services, Housing Finance, Life Insurance, Asset Management, General Insurance Broking, Stock and Securities Broking, Health Insurance and Other Financial Services. Geographically, it derives a majority of its revenue from India.

Aditya Birla Capital (BOM:540691) Headlines

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