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.
Align Technology's adjusted earnings per share data for the three months ended in Jun. 2023 was $1.460. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $6.96 for the trailing ten years ended in Jun. 2023.
During the past 12 months, Align Technology's average E10 Growth Rate was 9.60% per year.
During the past 3 years, the average E10 Growth Rate was 40.20% per year.
During the past 5 years, the average E10 Growth Rate was 41.60% per year.
During the past 10 years, the average E10 Growth Rate was 36.50% 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 Align Technology was 146.60% per year. The lowest was 29.40% per year. And the median was 35.40% per year.
As of today (2023-09-30), Align Technology's current stock price is $305.36. Align Technology's E10 for the quarter that ended in Jun. 2023 was $6.96. Align Technology's Shiller PE Ratio of today is 43.87.
During the past 13 years, the highestShiller PE Ratio of Align Technology was 246.71. The lowest was 28.01. And the median was 103.05.
Align Technology E10 Historical Data
The historical data trend for Align Technology'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.
Align Technology Annual Data
Trend
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
E10
1.72
2.36
4.54
5.75
6.50
Align Technology Quarterly Data
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
E10
6.35
6.46
6.50
6.79
6.96
Align Technology 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, Align Technology's adjusted earnings per share data for the three months ended in Jun. 2023 was:
Add all the adjusted EPS together and divide 10 will get our e10.
Align Technology (NAS:ALGN) 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.
Align Technology's Shiller P/E Ratio of today is calculated as
* 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 Align Technology was 246.71. The lowest was 28.01. And the median was 103.05.
Be Aware
Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.
Align Technology E10 Related Terms
Thank you for viewing the detailed overview of Align Technology's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.
Align Technology is the leading manufacturer of clear aligners. Invisalign, its main product, was approved by the FDA in 1998, and it has since dominated, controlling over 90% of the market. Invisalign can treat roughly 90% of all malocclusion cases (misaligned teeth), and there are over 230,000 Invisalign-trained dentists and orthodontists. In 2022, Invisalign treated over 2 million cases, or roughly 10% of all orthodontic cases for the year, and it has treated over 14 million patients since its launch. Align also sells intraoral scanners under the brand iTero, which captures digital impressions of patients' teeth and illustrates treatment plans. Over 85% of Invisalign cases are submitted by digital scans and iTero scans make up over half of these scans.
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