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Vardhman Textiles (BOM:502986) E10 : ₹32.46 (As of Jun. 2024)


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What is Vardhman Textiles 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.

Vardhman Textiles's adjusted earnings per share data for the three months ended in Jun. 2024 was ₹8.380. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₹32.46 for the trailing ten years ended in Jun. 2024.

During the past 12 months, Vardhman Textiles's average E10 Growth Rate was -48.20% 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.

As of today (2024-09-21), Vardhman Textiles's current stock price is ₹479.05. Vardhman Textiles's E10 for the quarter that ended in Jun. 2024 was ₹32.46. Vardhman Textiles's Shiller PE Ratio of today is 14.76.

During the past 13 years, the highest Shiller PE Ratio of Vardhman Textiles was 17.22. The lowest was 2.66. And the median was 5.78.


Vardhman Textiles E10 Historical Data

The historical data trend for Vardhman Textiles'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.

Vardhman Textiles E10 Chart

Vardhman Textiles 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 - - 96.27 79.20 31.61

Vardhman Textiles Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 62.63 59.15 50.10 31.61 32.46

Competitive Comparison of Vardhman Textiles's E10

For the Textile Manufacturing subindustry, Vardhman Textiles'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.


Vardhman Textiles's Shiller PE Ratio Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Vardhman Textiles's Shiller PE Ratio distribution charts can be found below:

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



Vardhman Textiles 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, Vardhman Textiles's adjusted earnings per share data for the three months ended in Jun. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2024 (Change)*Current CPI (Jun. 2024)
=8.38/155.7889*155.7889
=8.380

Current CPI (Jun. 2024) = 155.7889.

Vardhman Textiles Quarterly Data

per share eps CPI Adj_EPS
201409 3.182 96.780 5.122
201412 2.732 96.780 4.398
201503 3.496 97.163 5.605
201506 4.714 99.841 7.356
201509 4.498 101.753 6.887
201512 5.180 102.901 7.842
201603 5.786 102.518 8.793
201606 5.852 105.961 8.604
201609 14.906 105.961 21.915
201612 6.258 105.196 9.268
201703 5.782 105.196 8.563
201706 5.422 107.109 7.886
201709 4.790 109.021 6.845
201712 4.790 109.404 6.821
201803 5.744 109.786 8.151
201806 5.584 111.317 7.815
201809 6.892 115.142 9.325
201812 6.870 115.142 9.295
201903 6.288 118.202 8.288
201906 4.072 120.880 5.248
201909 4.090 123.175 5.173
201912 6.988 126.235 8.624
202003 5.138 124.705 6.419
202006 -2.276 127.000 -2.792
202009 2.118 130.118 2.536
202012 5.994 130.889 7.134
202103 8.710 131.771 10.298
202106 11.070 134.084 12.862
202109 16.940 135.847 19.427
202112 15.080 138.161 17.004
202203 11.180 138.822 12.546
202206 11.570 142.347 12.663
202209 7.200 144.661 7.754
202212 3.600 145.763 3.848
202303 5.580 146.865 5.919
202306 4.800 150.280 4.976
202309 4.720 151.492 4.854
202312 5.630 152.924 5.735
202403 7.050 153.035 7.177
202406 8.380 155.789 8.380

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


Vardhman Textiles  (BOM:502986) 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.

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

Shiller PE Ratio=Share Price/E10
=479.05/32.46
=14.76

* 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 Vardhman Textiles was 17.22. The lowest was 2.66. And the median was 5.78.


Be Aware

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


Vardhman Textiles E10 Related Terms

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


Vardhman Textiles Business Description

Traded in Other Exchanges
Address
Chandigarh Road, Vardhman Premises, Ludhiana, PB, IND, 141010
Vardhman Textiles Ltd is a manufacturer and seller of textiles and acrylic fiber. The company is based in India and generates about a quarter of revenue internationally. The company's largest revenue segment is textiles, which offers greige and dyed yarns in a number of fabrics such as cotton, polyester, acrylic, organic cotton, melange, cellulose, and synthetics. Vardhman Textiles provides fabrics for the apparel industry and home textiles and manufactures shirts for retail brands. In addition, the company offers hot-rolled bars for use in industries such as automotive, engineering, and allied industries.

Vardhman Textiles Headlines

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