GURUFOCUS.COM » STOCK LIST » Technology » Software » Infosys Ltd (BOM:500209) » Definitions » E10

Infosys (BOM:500209) E10 : ₹54.60 (As of Dec. 2024)


View and export this data going back to 1995. Start your Free Trial

What is Infosys 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.

Infosys's adjusted earnings per share data for the three months ended in Dec. 2024 was ₹16.144. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₹54.60 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Infosys's average E10 Growth Rate was 8.00% per year. During the past 3 years, the average E10 Growth Rate was 10.10% per year. During the past 5 years, the average E10 Growth Rate was 10.30% per year. During the past 10 years, the average E10 Growth Rate was 10.50% 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 Infosys was 27.70% per year. The lowest was 9.40% per year. And the median was 10.60% per year.

As of today (2025-03-31), Infosys's current stock price is ₹1570.40. Infosys's E10 for the quarter that ended in Dec. 2024 was ₹54.60. Infosys's Shiller PE Ratio of today is 28.76.

During the past 13 years, the highest Shiller PE Ratio of Infosys was 46.18. The lowest was 16.43. And the median was 24.98.


Infosys E10 Historical Data

The historical data trend for Infosys'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.

Infosys E10 Chart

Infosys Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.69 38.45 42.45 47.03 51.42

Infosys Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 50.53 51.42 52.79 54.00 54.60

Competitive Comparison of Infosys's E10

For the Information Technology Services subindustry, Infosys'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.


Infosys's Shiller PE Ratio Distribution in the Software Industry

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

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


;
;

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

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=16.144/158.3229*158.3229
=16.144

Current CPI (Dec. 2024) = 158.3229.

Infosys Quarterly Data

per share eps CPI Adj_EPS
201503 6.873 97.163 11.199
201506 6.697 99.841 10.620
201509 7.609 101.753 11.839
201512 7.648 102.901 11.767
201603 7.692 102.518 11.879
201606 7.399 105.961 11.055
201609 8.006 105.961 11.962
201612 8.137 105.196 12.246
201703 7.896 105.196 11.884
201706 7.734 107.109 11.432
201709 8.382 109.021 12.172
201712 10.922 109.404 15.806
201803 8.456 109.786 12.194
201806 8.135 111.317 11.570
201809 9.396 115.142 12.920
201812 8.500 115.142 11.688
201903 9.034 118.202 12.100
201906 9.020 120.880 11.814
201909 9.270 123.175 11.915
201912 10.674 126.235 13.387
202003 10.437 124.705 13.251
202006 9.842 127.000 12.269
202009 11.028 130.118 13.418
202012 12.515 130.889 15.138
202103 11.651 131.771 13.999
202106 12.508 134.084 14.769
202109 12.518 135.847 14.589
202112 13.571 138.161 15.551
202203 13.714 138.822 15.640
202206 12.494 142.347 13.896
202209 14.446 144.661 15.810
202212 15.670 145.763 17.020
202303 14.808 146.865 15.963
202306 13.978 150.280 14.726
202309 14.953 151.492 15.627
202312 14.986 152.924 15.515
202403 19.095 153.035 19.755
202406 15.023 155.789 15.267
202409 15.920 157.882 15.964
202412 16.144 158.323 16.144

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


Infosys  (BOM:500209) 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.

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

Shiller PE Ratio=Share Price/E10
=1570.40/54.60
=28.76

* 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 Infosys was 46.18. The lowest was 16.43. And the median was 24.98.


Be Aware

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


Infosys E10 Related Terms

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


Infosys Business Description

Address
44, Infosys Avenue, Hosur Road, Electronics City, Bengaluru, KA, IND, 560 100
Infosys is a leading global IT services provider, with nearly 320,000 employees. Based in Bengaluru, the Indian IT services firm leverages its offshore outsourcing model to derive 60% of its revenue from North America. The company offers traditional IT services offerings: consulting, managed services and cloud infrastructure services, and business process outsourcing as a service.

Infosys Headlines

No Headlines