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Apple (AAPL) E10 : $4.42 (As of Mar. 2024)


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What is Apple 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.

Apple's adjusted earnings per share data for the three months ended in Mar. 2024 was $1.530. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.42 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Apple's average E10 Growth Rate was 15.40% per year. During the past 3 years, the average E10 Growth Rate was 21.30% per year. During the past 5 years, the average E10 Growth Rate was 19.70% per year. During the past 10 years, the average E10 Growth Rate was 21.40% 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 Apple was 67.10% per year. The lowest was -30.70% per year. And the median was 23.05% per year.

As of today (2024-06-18), Apple's current stock price is $214.29. Apple's E10 for the quarter that ended in Mar. 2024 was $4.42. Apple's Shiller PE Ratio of today is 48.48.

During the past 13 years, the highest Shiller PE Ratio of Apple was 62.31. The lowest was 20.59. And the median was 34.22.


Apple E10 Historical Data

The historical data trend for Apple'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.

Apple E10 Chart

Apple Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.01 2.30 2.88 3.54 4.10

Apple 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 3.83 3.96 4.10 4.24 4.42

Competitive Comparison of Apple's E10

For the Consumer Electronics subindustry, Apple'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.


Apple's Shiller PE Ratio Distribution in the Hardware Industry

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

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



Apple 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, Apple'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)
=1.53/131.7762*131.7762
=1.530

Current CPI (Mar. 2024) = 131.7762.

Apple Quarterly Data

per share eps CPI Adj_EPS
201406 0.320 100.560 0.419
201409 0.355 100.428 0.466
201412 0.765 99.070 1.018
201503 0.583 99.621 0.771
201506 0.463 100.684 0.606
201509 0.490 100.392 0.643
201512 0.820 99.792 1.083
201603 0.475 100.470 0.623
201606 0.355 101.688 0.460
201609 0.418 101.861 0.541
201612 0.840 101.863 1.087
201703 0.525 102.862 0.673
201706 0.418 103.349 0.533
201709 0.518 104.136 0.655
201712 0.973 104.011 1.233
201803 0.683 105.290 0.855
201806 0.585 106.317 0.725
201809 0.728 106.507 0.901
201812 1.045 105.998 1.299
201903 0.615 107.251 0.756
201906 0.545 108.070 0.665
201909 0.758 108.329 0.922
201912 1.250 108.420 1.519
202003 0.640 108.902 0.774
202006 0.650 108.767 0.788
202009 0.730 109.815 0.876
202012 1.680 109.897 2.014
202103 1.400 111.754 1.651
202106 1.300 114.631 1.494
202109 1.240 115.734 1.412
202112 2.100 117.630 2.353
202203 1.520 121.301 1.651
202206 1.200 125.017 1.265
202209 1.290 125.227 1.357
202212 1.880 125.222 1.978
202303 1.520 127.348 1.573
202306 1.260 128.729 1.290
202309 1.460 129.860 1.482
202312 2.180 129.419 2.220
202403 1.530 131.776 1.530

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


Apple  (NAS:AAPL) 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.

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

Shiller PE Ratio=Share Price/E10
=214.29/4.42
=48.48

* 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 Apple was 62.31. The lowest was 20.59. And the median was 34.22.


Be Aware

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


Apple E10 Related Terms

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


Apple (AAPL) Business Description

Address
One Apple Park Way, Cupertino, CA, USA, 95014
Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's iPhone makes up a majority of the firm sales, and Apple's other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.
Executives
Chris Kondo officer: Principal Accounting Officer 1 INFINITE LOOP, CUPERTINO CA 95014
Katherine L. Adams officer: SVP, General Counsel APPLE INC., 1 INFINITE LOOP, CUPERTINO CA 95014
Luca Maestri officer: Senior Vice President, CFO 1 INFINITE LOOP, CUPERTINO CA 95014
Jeffrey E Williams officer: COO ONE INFINITE LOOP, CUPERTINO CA 95014
Deirdre O'brien officer: Senior Vice President ONE APPLE PARK WAY, CUPERTINO CA 95014
Timothy D Cook director, officer: Chief Executive Officer C/O APPLE INC, ONE INFINITE LOOP, CUPERTINO CA 95014
Arthur D Levinson director C/O GENENTECH INC, 1 DNA WAY MS 49, SOUTH SAN FRANCISCO CA 94080-4990
Alex Gorsky director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Monica C Lozano director
Angela J Ahrendts officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014
Johny Srouji officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014
Craig Federighi officer: Senior Vice President 807 11TH AVENUE, SUNNYVALE CA 94089
Daniel J. Riccio officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014
Philip W Schiller officer: Senior Vice President C/O APPLE INC, ONE INFINITE LOOP, CUPERTINO CA 95014
Susan Wagner director C/O BLACKROCK, INC., 40 EAST 52ND STREET, NEW YORK NY 10022

Apple (AAPL) Headlines

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