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Accenture PLC  (NYSE:ACN) E10: $4.29 (As of May. 2017)

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.

Accenture PLC's adjusted earnings per share data for the three months ended in May. 2017 was $1.050. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.29 for the trailing ten years ended in May. 2017.

As of today, Accenture PLC's current stock price is $138.62. Accenture PLC's E10 for the quarter that ended in May. 2017 was $4.29. Accenture PLC's Shiller PE Ratio of today is 32.31.

During the past 13 years, the highest Shiller PE Ratio of Accenture PLC was 31.78. The lowest was 22.81. And the median was 27.83.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Accenture PLC Annual Data

Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.85 3.21 3.49 3.99 4.38

Accenture PLC Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
E10 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 Premium Member Only Premium Member Only Premium Member Only 3.99 4.09 4.21 4.29 4.38

Competitive Comparison
* 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.


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.

For example, Accenture PLC's adjusted earnings per share data for the three months ended in May. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of May. 2017 (Change)*Current CPI (May. 2017)
=1.05/244.733*244.733
=1.050

Current CPI (May. 2017) = 244.733.

Accenture PLC Quarterly Data

per share eps CPI Adj_EPS
200708 0.500 207.917 0.589
200711 0.600 210.177 0.699
200802 0.640 211.693 0.740
200805 0.740 216.632 0.836
200808 0.680 219.086 0.760
200811 0.740 212.425 0.853
200902 0.630 212.193 0.727
200905 0.680 213.856 0.778
200908 0.390 215.834 0.442
200911 0.670 216.330 0.758
201002 0.600 216.741 0.677
201005 0.730 218.178 0.819
201008 0.670 218.312 0.751
201011 0.810 218.803 0.906
201102 0.750 221.309 0.829
201105 0.930 225.964 1.007
201108 0.910 226.545 0.983
201111 0.960 226.230 1.039
201202 0.970 227.663 1.043
201205 1.030 229.815 1.097
201208 0.880 230.379 0.935
201211 1.060 230.221 1.127
201302 1.650 232.166 1.739
201305 1.210 232.945 1.271
201308 1.010 233.877 1.057
201311 1.150 233.069 1.208
201402 1.030 234.781 1.074
201405 1.260 237.900 1.296
201408 1.080 237.852 1.111
201411 1.290 236.151 1.337
201502 1.080 234.722 1.126
201505 1.240 237.805 1.276
201508 1.150 238.316 1.181
201511 1.280 237.336 1.320
201602 2.080 237.111 2.147
201605 1.410 240.229 1.436
201608 1.680 240.849 1.707
201611 1.580 241.353 1.602
201702 1.330 243.603 1.336
201705 1.050 244.733 1.050

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 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.

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

Shiller PE Ratio=Share Price/E10
=138.62/4.29
=32.31

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

During the past 13 years, the highest Shiller P/E Ratio of Accenture PLC was 31.78. The lowest was 22.81. And the median was 27.83.


Be Aware

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


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