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Pegasystems (FRA:PEA) E10 : €-0.43 (As of Mar. 2024)


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What is Pegasystems 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.

Pegasystems's adjusted earnings per share data for the three months ended in Mar. 2024 was €-0.129. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €-0.43 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.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Pegasystems was 78.30% per year. The lowest was -51.50% per year. And the median was 11.90% per year.

As of today (2024-05-28), Pegasystems's current stock price is €55.00. Pegasystems's E10 for the quarter that ended in Mar. 2024 was €-0.43. Pegasystems's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Pegasystems was 2795.50. The lowest was 84.11. And the median was 158.65.


Pegasystems E10 Historical Data

The historical data trend for Pegasystems'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.

Pegasystems E10 Chart

Pegasystems 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 0.17 0.10 0.04 -0.39 -0.39

Pegasystems 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 -0.41 -0.48 -0.54 -0.39 -0.43

Competitive Comparison of Pegasystems's E10

For the Software - Application subindustry, Pegasystems'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.


Pegasystems's Shiller PE Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Pegasystems's Shiller PE Ratio distribution charts can be found below:

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



Pegasystems 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, Pegasystems'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)
=-0.129/131.7762*131.7762
=-0.129

Current CPI (Mar. 2024) = 131.7762.

Pegasystems Quarterly Data

per share eps CPI Adj_EPS
201406 0.015 100.560 0.020
201409 0.016 100.428 0.021
201412 0.211 99.070 0.281
201503 0.074 99.621 0.098
201506 0.036 100.684 0.047
201509 0.071 100.392 0.093
201512 0.248 99.792 0.327
201603 0.117 100.470 0.153
201606 0.053 101.688 0.069
201609 0.036 101.861 0.047
201612 0.104 101.863 0.135
201703 0.608 102.862 0.779
201706 0.036 103.349 0.046
201709 0.008 104.136 0.010
201712 -0.034 104.011 -0.043
201803 0.122 105.290 0.153
201806 -0.111 106.317 -0.138
201809 -0.086 106.507 -0.106
201812 0.176 105.998 0.219
201903 -0.327 107.251 -0.402
201906 -0.363 108.070 -0.443
201909 -0.345 108.329 -0.420
201912 0.009 108.420 0.011
202003 -0.290 108.902 -0.351
202006 -0.231 108.767 -0.280
202009 -0.204 109.815 -0.245
202012 0.041 109.897 0.049
202103 -0.067 111.754 -0.079
202106 0.357 114.631 0.410
202109 -0.587 115.734 -0.668
202112 -0.407 117.630 -0.456
202203 -0.004 121.301 -0.004
202206 -3.311 125.017 -3.490
202209 -1.151 125.227 -1.211
202212 0.387 125.222 0.407
202303 -0.233 127.348 -0.241
202306 -0.517 128.729 -0.529
202309 -0.084 129.860 -0.085
202312 1.495 129.419 1.522
202403 -0.129 131.776 -0.129

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


Pegasystems  (FRA:PEA) 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.

During the past 13 years, the highest Shiller P/E Ratio of Pegasystems was 2795.50. The lowest was 84.11. And the median was 158.65.


Be Aware

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


Pegasystems E10 Related Terms

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


Pegasystems (FRA:PEA) Business Description

Traded in Other Exchanges
Address
One Main Street, Cambridge, MA, USA, 02142
Founded in 1983, Pegasystems provides a suite of solutions for customer engagement and business process management. The company's key offering is the Pega Infinity platform, which combines business process management, or BPM, with customer relationship management, or CRM, applications. The company focuses on enterprise-size customers, specifically within the financial, insurance, and healthcare verticals.

Pegasystems (FRA:PEA) Headlines

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