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Sigma Healthcare (ASX:SIG) E10 : A$0.03 (As of Jan. 2024)


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What is Sigma Healthcare 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.

Sigma Healthcare's adjusted earnings per share data for the fiscal year that ended in Jan. 2024 was A$0.004. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is A$0.03 for the trailing ten years ended in Jan. 2024.

During the past 12 months, Sigma Healthcare's average E10 Growth Rate was -25.00% per year. During the past 3 years, the average E10 Growth Rate was -9.10% 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 Sigma Healthcare was 58.70% per year. The lowest was -26.00% per year. And the median was -9.10% per year.

As of today (2024-09-24), Sigma Healthcare's current stock price is A$ 1.445. Sigma Healthcare's E10 for the fiscal year that ended in Jan. 2024 was A$0.03. Sigma Healthcare's Shiller PE Ratio of today is 48.17.

During the past 13 years, the highest Shiller PE Ratio of Sigma Healthcare was 67.91. The lowest was 10.43. And the median was 16.98.


Sigma Healthcare E10 Historical Data

The historical data trend for Sigma Healthcare'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.

Sigma Healthcare E10 Chart

Sigma Healthcare Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.01 0.04 0.04 0.04 0.03

Sigma Healthcare Semi-Annual Data
Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24
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 0.04 - 0.04 - 0.03

Competitive Comparison of Sigma Healthcare's E10

For the Medical Distribution subindustry, Sigma Healthcare'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.


Sigma Healthcare's Shiller PE Ratio Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Sigma Healthcare's Shiller PE Ratio distribution charts can be found below:

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



Sigma Healthcare 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, Sigma Healthcare's adjusted earnings per share data for the fiscal year that ended in Jan. 2024 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.004/127.6062*127.6062
=0.004

Current CPI (Jan. 2024) = 127.6062.

Sigma Healthcare Annual Data

per_share_eps CPI Adj_EPS
201501 0.047 99.187 0.060
201601 0.046 100.488 0.058
201701 0.049 102.624 0.061
201801 0.050 104.574 0.061
201901 0.035 105.967 0.042
202001 -0.013 108.289 -0.015
202101 0.057 109.496 0.066
202201 -0.007 115.069 -0.008
202301 0.002 123.148 0.002
202401 0.004 127.606 0.004

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


Sigma Healthcare  (ASX:SIG) 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.

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

Shiller PE Ratio=Share Price/E10
=1.445/0.03
=48.17

* 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 Sigma Healthcare was 67.91. The lowest was 10.43. And the median was 16.98.


Be Aware

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


Sigma Healthcare E10 Related Terms

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


Sigma Healthcare Business Description

Traded in Other Exchanges
Address
2125 Dandenong Road, Level 6, Clayton, Melbourne, VIC, AUS, 3168
Sigma Healthcare is an Australian pharmaceutical distributor, wholesaler and pharmacy franchisor. The revenue growth prospects and returns of pharmaceutical distribution are subdued due to ongoing Pharmaceutical Benefits Scheme, or PBS, price reform, and regulated wholesale gross margins being capped at 7% for community pharmacy. As a result, Sigma and its competitors are seeking to expand into unregulated revenue streams. In addition, pharmacy ownership is restricted to pharmacists, thereby excluding direct corporate ownership and requiring exposure via a franchise business model.