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Ansys Inc  (NAS:ANSS) E10: $2.35 (As of Sep. 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.

Ansys Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.850. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.35 for the trailing ten years ended in Sep. 2017.

As of today, Ansys Inc's current stock price is $161.54. Ansys Inc's E10 for the quarter that ended in Sep. 2017 was $2.35. Ansys Inc's Shiller PE Ratio of today is 68.74.

During the past 13 years, the highest Shiller PE Ratio of Ansys Inc was 103.00. The lowest was 32.88. And the median was 58.88.


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.

Ansys Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.17 1.40 1.62 1.83 2.14

Ansys Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 2.08 2.14 2.21 2.26 2.35

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, Ansys Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=0.85/246.819*246.819
=0.850

Current CPI (Sep. 2017) = 246.819.

Ansys Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.360 210.036 0.423
200803 0.320 213.528 0.370
200806 0.340 218.815 0.384
200809 0.290 218.783 0.327
200812 0.350 210.228 0.411
200903 0.230 212.709 0.267
200906 0.300 215.693 0.343
200909 0.330 215.969 0.377
200912 0.410 215.949 0.469
201003 0.350 217.631 0.397
201006 0.380 217.965 0.430
201009 0.390 218.439 0.441
201012 0.520 219.179 0.586
201103 0.450 223.467 0.497
201106 0.480 225.722 0.525
201109 0.480 226.889 0.522
201112 0.500 225.672 0.547
201203 0.480 229.392 0.516
201206 0.530 229.478 0.570
201209 0.540 231.407 0.576
201212 0.590 229.601 0.634
201303 0.540 232.773 0.573
201306 0.590 233.504 0.624
201309 0.660 234.149 0.696
201312 0.800 233.049 0.847
201403 0.600 236.293 0.627
201406 0.670 238.343 0.694
201409 0.700 238.031 0.726
201412 0.740 234.812 0.778
201503 0.610 236.119 0.638
201506 0.680 238.638 0.703
201509 0.720 237.945 0.747
201512 0.750 236.525 0.783
201603 0.630 238.132 0.653
201606 0.780 241.018 0.799
201609 0.780 241.428 0.797
201612 0.800 241.432 0.818
201703 0.730 243.801 0.739
201706 0.800 244.955 0.806
201709 0.850 246.819 0.850

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.

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

Shiller PE Ratio=Share Price/E10
=161.54/2.35
=68.74

* 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 Ansys Inc was 103.00. The lowest was 32.88. And the median was 58.88.


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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