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Adobe (ADBE) E10 : $7.17 (As of Feb. 2024)


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What is Adobe 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.

Adobe's adjusted earnings per share data for the three months ended in Feb. 2024 was $1.360. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $7.17 for the trailing ten years ended in Feb. 2024.

During the past 12 months, Adobe's average E10 Growth Rate was 19.70% per year. During the past 3 years, the average E10 Growth Rate was 26.10% per year. During the past 5 years, the average E10 Growth Rate was 29.10% per year. During the past 10 years, the average E10 Growth Rate was 20.70% 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 Adobe was 31.60% per year. The lowest was -1.60% per year. And the median was 17.30% per year.

As of today (2024-05-26), Adobe's current stock price is $475.43. Adobe's E10 for the quarter that ended in Feb. 2024 was $7.17. Adobe's Shiller PE Ratio of today is 66.31.

During the past 13 years, the highest Shiller PE Ratio of Adobe was 178.70. The lowest was 32.95. And the median was 83.95.


Adobe E10 Historical Data

The historical data trend for Adobe'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.

Adobe E10 Chart

Adobe Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.54 3.48 4.54 5.68 6.97

Adobe Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 5.99 6.32 6.67 6.97 7.17

Competitive Comparison of Adobe's E10

For the Software - Infrastructure subindustry, Adobe'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.


Adobe's Shiller PE Ratio Distribution in the Software Industry

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

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



Adobe 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, Adobe's adjusted earnings per share data for the three months ended in Feb. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=1.36/130.9299*130.9299
=1.360

Current CPI (Feb. 2024) = 130.9299.

Adobe Quarterly Data

per share eps CPI Adj_EPS
201405 0.170 100.373 0.222
201408 0.090 100.352 0.117
201411 0.140 99.635 0.184
201502 0.170 99.032 0.225
201505 0.290 100.333 0.378
201508 0.340 100.548 0.443
201511 0.440 100.135 0.575
201602 0.500 100.040 0.654
201605 0.480 101.355 0.620
201608 0.540 101.617 0.696
201611 0.800 101.829 1.029
201702 0.800 102.779 1.019
201705 0.750 103.256 0.951
201708 0.840 103.587 1.062
201711 1.000 104.072 1.258
201802 1.170 105.052 1.458
201805 1.330 106.148 1.641
201808 1.340 106.383 1.649
201811 1.370 106.338 1.687
201902 1.360 106.649 1.670
201905 1.290 108.048 1.563
201908 1.610 108.245 1.947
201911 1.740 108.519 2.099
202002 1.960 109.139 2.351
202005 2.270 108.175 2.747
202008 1.970 109.662 2.352
202011 4.640 109.793 5.533
202102 2.610 110.968 3.079
202105 2.320 113.576 2.674
202108 2.520 115.421 2.859
202111 2.570 117.269 2.869
202202 2.660 119.703 2.909
202205 2.490 123.323 2.644
202208 2.420 124.958 2.536
202211 2.530 125.607 2.637
202302 2.710 126.928 2.795
202305 2.820 128.314 2.877
202308 3.050 129.538 3.083
202311 3.230 129.548 3.264
202402 1.360 130.930 1.360

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


Adobe  (NAS:ADBE) 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.

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

Shiller PE Ratio=Share Price/E10
=475.43/7.17
=66.31

* 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 Adobe was 178.70. The lowest was 32.95. And the median was 83.95.


Be Aware

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


Adobe E10 Related Terms

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


Adobe (ADBE) Business Description

Address
345 Park Avenue, San Jose, CA, USA, 95110-2704
Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing and engaging with compelling content multiple operating systems, devices and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue).
Executives
Mark S. Garfield officer: VP, CAO & Corp. Controller 345 PARK AVENUE, SAN JOSE CA 95110-2704
Amy Banse director 345 PARK AVENUE, SAN JOSE CA 95110
David Wadhwani officer: SVP & GM, Digital Media ADOBE INC., 345 PARK AVE, SAN JOSE CA 95110
Shantanu Narayen director, officer: President and CEO 345 PARK AVENUE, SAN JOSE CA 95110
Daniel Durn officer: EVP and CFO C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Scott Belsky officer: EVP, Chief Product Officer 345 PARK AVENUE, SAN JOSE CA 95110
Cristiano R Amon director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
John E Warnock director, other: Co-Chairman of the Board C/O ADOBE SYSTEMS INC, 345 PARK AVENUE P O BOX 2704, SAN JOSE CA 95110-2704
Dana Rao officer: EVP, Gen. Counsel & Secretary 345 PARK AVE, SAN JOSE CA 95110
Ann Lewnes officer: SVP, Chief Marketing Officer 345 PARK AVENUE, SAN JOSE CA 95110
David A Ricks director LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
M. Brett Biggs director 702 SW 8TH STREET, BENTONVILLE AR 72716
Laura Desmond director 345 PARK AVENUE, SAN JOSE CA 95110
Spencer Adam Neumann director SIERRA INCOME CORPORATION, 375 PARK AVE., SUITE 3304, NEW YORK NY 10152
Gloria Chen officer: EVP, Strategy & Growth 345 PARK AVENUE, SAN JOSE CA 95110

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