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Quality Systems Inc (NAS:QSII)
E10
$0.73 (As of Jun. 2016)

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.

Quality Systems Inc's adjusted earnings per share data for the three months ended in Jun. 2016 was $-0.010. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.73 for the trailing ten years ended in Jun. 2016.

As of today, Quality Systems Inc's current stock price is $11.49. Quality Systems Inc's E10 for the quarter that ended in Jun. 2016 was $0.73. Quality Systems Inc's Shiller P/E Ratio of today is 15.74.

During the past 13 years, the highest Shiller P/E Ratio of Quality Systems Inc was 134.94. The lowest was 15.72. And the median was 56.49.


Definition

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.

For example, Quality Systems Inc's adjusted earnings per share data for the three months ended in Jun. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2016 (Change)*Current CPI (Jun. 2016)
=-0.01/241.038*241.038
=-0.010

Current CPI (Jun. 2016) = 241.038.

Quality Systems Inc Quarterly Data

201403201406201409201412201503201506201509201512201603201606
per share eps 0.0800.0800.0800.1100.1700.1000.1400.120-0.270-0.010
CPI 236.293238.343238.031234.812236.119238.638237.945236.525238.132241.038
Adj_EPS 0.0820.0810.0810.1130.1740.1010.1420.122-0.273-0.010
201109201112201203201206201209201212201303201306201309201312
per share eps 0.3500.3600.2500.2600.2600.260-0.0700.2200.170-0.210
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 0.3720.3850.2630.2730.2710.273-0.0720.2270.175-0.217
200903200906200909200912201003201006201009201012201103201106
per share eps 0.1950.1800.2050.2300.2250.2100.2300.3000.3200.320
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 0.2210.2010.2290.2570.2490.2320.2540.3300.3450.342
200609200612200703200706200709200712200803200806200809200812
per share eps 0.1500.1600.1550.1450.1750.2000.2000.2000.1850.230
CPI 202.900201.800205.352208.352208.490210.036213.528218.815218.783210.228
Adj_EPS 0.1780.1910.1820.1680.2020.2300.2260.2200.2040.264

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


Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller P/E 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.

Quality Systems Inc's Shiller P/E Ratio of today is calculated as

Shiller P/E Ratio=Share Price/E10
=11.49/0.73
=15.74

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

During the past 13 years, the highest Shiller P/E Ratio of Quality Systems Inc was 134.94. The lowest was 15.72. And the median was 56.49.


Be Aware

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


Related Terms

Shiller P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Quality Systems Inc Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
e10 0.190.280.360.450.560.690.760.760.770.74

Quality Systems Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
e10 0.760.770.770.770.770.780.780.770.740.73
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