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Nelco (BOM:504112) E10 : ₹7.38 (As of Dec. 2024)


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What is Nelco 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.

Nelco's adjusted earnings per share data for the three months ended in Dec. 2024 was ₹2.170. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₹7.38 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Nelco's average E10 Growth Rate was 8.30% 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 (2025-03-26), Nelco's current stock price is ₹898.70. Nelco's E10 for the quarter that ended in Dec. 2024 was ₹7.38. Nelco's Shiller PE Ratio of today is 121.78.

During the past 13 years, the highest Shiller PE Ratio of Nelco was 297.81. The lowest was 98.45. And the median was 139.83.


Nelco E10 Historical Data

The historical data trend for Nelco'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.

Nelco E10 Chart

Nelco Annual Data
Trend Sep14 Sep15 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 3.32 5.18 7.30

Nelco 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 6.85 7.30 7.07 7.23 7.38

Competitive Comparison of Nelco's E10

For the Communication Equipment subindustry, Nelco'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.


Nelco's Shiller PE Ratio Distribution in the Hardware Industry

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

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


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Nelco 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, Nelco'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)
=2.17/158.3229*158.3229
=2.170

Current CPI (Dec. 2024) = 158.3229.

Nelco Quarterly Data

per share eps CPI Adj_EPS
201503 -1.150 97.163 -1.874
201506 -0.630 99.841 -0.999
201509 0.180 101.753 0.280
201512 0.140 102.901 0.215
201603 1.130 102.518 1.745
201606 0.780 105.961 1.165
201609 0.590 105.961 0.882
201612 0.990 105.196 1.490
201703 0.430 105.196 0.647
201706 0.870 107.109 1.286
201709 1.250 109.021 1.815
201712 1.500 109.404 2.171
201803 1.680 109.786 2.423
201806 1.720 111.317 2.446
201809 4.420 115.142 6.078
201812 1.750 115.142 2.406
201903 1.870 118.202 2.505
201906 1.480 120.880 1.938
201909 0.670 123.175 0.861
201912 1.600 126.235 2.007
202003 2.550 124.705 3.237
202006 0.810 127.000 1.010
202009 0.970 130.118 1.180
202012 1.670 130.889 2.020
202103 1.970 131.771 2.367
202106 1.920 134.084 2.267
202109 1.490 135.847 1.737
202112 2.300 138.161 2.636
202203 1.330 138.822 1.517
202206 2.070 142.347 2.302
202209 1.960 144.661 2.145
202212 2.190 145.763 2.379
202303 2.480 146.865 2.673
202306 2.510 150.280 2.644
202309 2.490 151.492 2.602
202312 2.690 152.924 2.785
202403 2.670 153.035 2.762
202406 2.000 155.789 2.033
202409 1.800 157.882 1.805
202412 2.170 158.323 2.170

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


Nelco  (BOM:504112) 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.

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

Shiller PE Ratio=Share Price/E10
=898.70/7.38
=121.78

* 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 Nelco was 297.81. The lowest was 98.45. And the median was 139.83.


Be Aware

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


Nelco E10 Related Terms

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


Nelco Business Description

Traded in Other Exchanges
Address
Plot No. EL-6, TTC Industrial Area, MIDC, Electronics Zone, Mahape, Navi Mumbai, MH, IND, 400710
Nelco Ltd provides solutions for the management of network connectivity, networking services, and turnkey communication systems supply and integration. It provides satellite communication services to companies in various segments such as Banking: Bank branches, ATMS, Managed service providers, Oil, Energy and Gas, WiFi on aircrafts and Maritime communication, Telecommunication, and Manufacturing companies. The company has one segment: Network Systems products and services.

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