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Arkema (XPAR:AKE) E10 : €8.28 (As of Mar. 2024)


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What is Arkema 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.

Arkema's adjusted earnings per share data for the three months ended in Mar. 2024 was €0.990. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €8.28 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Arkema's average E10 Growth Rate was 2.20% per year. During the past 3 years, the average E10 Growth Rate was 19.70% per year. During the past 5 years, the average E10 Growth Rate was 15.90% 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 Arkema was 45.90% per year. The lowest was 14.00% per year. And the median was 19.70% per year.

As of today (2024-05-21), Arkema's current stock price is €97.35. Arkema's E10 for the quarter that ended in Mar. 2024 was €8.28. Arkema's Shiller PE Ratio of today is 11.76.

During the past 13 years, the highest Shiller PE Ratio of Arkema was 70.41. The lowest was 9.77. And the median was 21.21.


Arkema E10 Historical Data

The historical data trend for Arkema'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.

Arkema E10 Chart

Arkema 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 5.06 4.79 6.41 7.70 8.22

Arkema 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 8.10 8.16 8.22 8.22 8.28

Competitive Comparison of Arkema's E10

For the Specialty Chemicals subindustry, Arkema'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.


Arkema's Shiller PE Ratio Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Arkema's Shiller PE Ratio distribution charts can be found below:

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



Arkema 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, Arkema'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)
=0.99/119.4700*119.4700
=0.990

Current CPI (Mar. 2024) = 119.4700.

Arkema Quarterly Data

per share eps CPI Adj_EPS
201406 0.770 100.180 0.918
201409 0.360 99.920 0.430
201412 0.390 99.860 0.467
201503 0.570 100.170 0.680
201506 1.820 100.440 2.165
201509 0.810 99.950 0.968
201512 0.650 100.040 0.776
201603 1.310 100.020 1.565
201606 1.960 100.630 2.327
201609 1.260 100.340 1.500
201612 1.130 100.650 1.341
201703 1.810 101.170 2.137
201706 2.100 101.320 2.476
201709 1.880 101.330 2.217
201712 1.360 101.850 1.595
201803 2.470 102.750 2.872
201806 2.870 103.370 3.317
201809 2.270 103.560 2.619
201812 1.210 103.470 1.397
201903 1.920 103.890 2.208
201906 1.810 104.580 2.068
201909 1.900 104.500 2.172
201912 0.780 104.980 0.888
202003 1.020 104.590 1.165
202006 1.550 104.790 1.767
202009 1.020 104.550 1.166
202012 0.370 104.960 0.421
202103 1.550 105.750 1.751
202106 10.760 106.340 12.089
202109 3.160 106.810 3.535
202112 1.570 107.850 1.739
202203 4.360 110.490 4.714
202206 5.400 112.550 5.732
202209 2.860 112.740 3.031
202212 0.130 114.160 0.136
202303 1.690 116.790 1.729
202306 2.030 117.650 2.061
202309 1.370 118.260 1.384
202312 0.270 118.390 0.272
202403 0.990 119.470 0.990

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


Arkema  (XPAR:AKE) 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.

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

Shiller PE Ratio=Share Price/E10
=97.35/8.28
=11.76

* 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 Arkema was 70.41. The lowest was 9.77. And the median was 21.21.


Be Aware

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


Arkema E10 Related Terms

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


Arkema (XPAR:AKE) Business Description

Address
420 rue d’Estienne d’Orves, Colombes, FRA, 92700
Arkema is a French chemical company formerly known for its large presence in the global acrylics market. However, the company has now developed a strong portfolio of speciality materials. Arkema is organised into four segments. Adhesive solutions, advanced materials, and coatings solutions contain the more specialized material businesses. The intermediates segment houses the remaining commodity chemical businesses. Geographically, sales are split fairly equally between Europe, the U.S., and Asia.

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