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Tata Communications (BOM:500483) E10 : ₹20.03 (As of Sep. 2024)


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What is Tata Communications 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.

Tata Communications's adjusted earnings per share data for the three months ended in Sep. 2024 was ₹7.970. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₹20.03 for the trailing ten years ended in Sep. 2024.

During the past 12 months, Tata Communications's average E10 Growth Rate was 25.10% per year. During the past 3 years, the average E10 Growth Rate was 211.80% 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 Tata Communications was 211.80% per year. The lowest was -35.50% per year. And the median was -15.40% per year.

As of today (2024-12-11), Tata Communications's current stock price is ₹1839.95. Tata Communications's E10 for the quarter that ended in Sep. 2024 was ₹20.03. Tata Communications's Shiller PE Ratio of today is 91.86.

During the past 13 years, the highest Shiller PE Ratio of Tata Communications was 2184.92. The lowest was 85.11. And the median was 117.90.


Tata Communications E10 Historical Data

The historical data trend for Tata Communications'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.

Tata Communications E10 Chart

Tata Communications 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 -14.03 0.59 3.93 14.47 17.89

Tata Communications Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 16.01 16.10 17.89 19.50 20.03

Competitive Comparison of Tata Communications's E10

For the Telecom Services subindustry, Tata Communications'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.


Tata Communications's Shiller PE Ratio Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Tata Communications's Shiller PE Ratio distribution charts can be found below:

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



Tata Communications 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, Tata Communications's adjusted earnings per share data for the three months ended in Sep. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=7.97/157.8822*157.8822
=7.970

Current CPI (Sep. 2024) = 157.8822.

Tata Communications Quarterly Data

per share eps CPI Adj_EPS
201412 3.810 96.780 6.215
201503 -6.250 97.163 -10.156
201506 1.520 99.841 2.404
201509 3.940 101.753 6.113
201512 3.890 102.901 5.968
201603 -9.040 102.518 -13.922
201606 1.470 105.961 2.190
201609 1.400 105.961 2.086
201612 0.030 105.196 0.045
201703 -9.180 105.196 -13.778
201706 1.130 107.109 1.666
201709 -8.770 109.021 -12.701
201712 0.360 109.404 0.520
201803 -4.240 109.786 -6.097
201806 -2.050 111.317 -2.908
201809 0.060 115.142 0.082
201812 6.080 115.142 8.337
201903 -6.980 118.202 -9.323
201906 2.690 120.880 3.513
201909 1.890 123.175 2.423
201912 2.050 126.235 2.564
202003 -9.650 124.705 -12.217
202006 9.050 127.000 11.251
202009 13.490 130.118 16.368
202012 10.850 130.889 13.088
202103 10.500 131.771 12.581
202106 10.390 134.084 12.234
202109 14.930 135.847 17.352
202112 13.870 138.161 15.850
202203 12.810 138.822 14.569
202206 19.080 142.347 21.162
202209 18.680 144.661 20.387
202212 13.820 145.763 14.969
202303 11.430 146.865 12.287
202306 13.390 150.280 14.067
202309 7.740 151.492 8.066
202312 1.570 152.924 1.621
202403 11.260 153.035 11.617
202406 11.670 155.789 11.827
202409 7.970 157.882 7.970

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


Tata Communications  (BOM:500483) 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.

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

Shiller PE Ratio=Share Price/E10
=1839.95/20.03
=91.86

* 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 Tata Communications was 2184.92. The lowest was 85.11. And the median was 117.90.


Be Aware

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


Tata Communications E10 Related Terms

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


Tata Communications Business Description

Traded in Other Exchanges
Address
Plot No. C21 & C36, ‘G’ Block, Bandra Kurla Complex, Mumbai, MH, IND, 400 098
Tata Communications Ltd is the primary provider of international and national voice and data transmission long-distance services, internet dial-up and broadband services and other value-added services. The company's reportable segments are Voice Solutions (VS), Data and Managed Services (DMS) and Real Estate (RE). It generates maximum revenue from Data and Managed Services (DMS) segment.

Tata Communications Headlines

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