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Mphasis (BOM:526299) E10 : ₹69.73 (As of Mar. 2024)


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What is Mphasis 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.

Mphasis's adjusted earnings per share data for the three months ended in Mar. 2024 was ₹20.670. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₹69.73 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Mphasis's average E10 Growth Rate was 7.80% per year. During the past 3 years, the average E10 Growth Rate was -2.90% 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 Mphasis was -2.90% per year. The lowest was -5.50% per year. And the median was -4.20% per year.

As of today (2024-05-22), Mphasis's current stock price is ₹2372.90. Mphasis's E10 for the quarter that ended in Mar. 2024 was ₹69.73. Mphasis's Shiller PE Ratio of today is 34.03.

During the past 13 years, the highest Shiller PE Ratio of Mphasis was 57.98. The lowest was 8.64. And the median was 32.38.


Mphasis E10 Historical Data

The historical data trend for Mphasis'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.

Mphasis E10 Chart

Mphasis 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 76.70 76.23 59.32 64.75 69.73

Mphasis Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 64.75 66.89 67.95 69.06 69.73

Competitive Comparison of Mphasis's E10

For the Information Technology Services subindustry, Mphasis'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.


Mphasis's Shiller PE Ratio Distribution in the Software Industry

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

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



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

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=20.67/153.0345*153.0345
=20.670

Current CPI (Mar. 2024) = 153.0345.

Mphasis Quarterly Data

per share eps CPI Adj_EPS
201406 8.310 94.103 13.514
201409 7.620 96.780 12.049
201412 7.700 96.780 12.176
201503 8.440 97.163 13.293
201506 7.630 99.841 11.695
201509 9.080 101.753 13.656
201512 8.020 102.901 11.927
201603 5.910 102.518 8.822
201606 9.530 105.961 13.764
201609 9.820 105.961 14.183
201612 9.510 105.196 13.835
201703 8.740 105.196 12.715
201706 9.080 107.109 12.973
201709 10.220 109.021 14.346
201712 11.080 109.404 15.499
201803 12.220 109.786 17.034
201806 13.230 111.317 18.188
201809 13.850 115.142 18.408
201812 14.260 115.142 18.953
201903 14.170 118.202 18.346
201906 14.090 120.880 17.838
201909 14.540 123.175 18.065
201912 15.630 126.235 18.948
202003 18.820 124.705 23.095
202006 14.670 127.000 17.677
202009 15.870 130.118 18.665
202012 17.220 130.889 20.133
202103 16.710 131.771 19.407
202106 17.910 134.084 20.441
202109 17.960 135.847 20.232
202112 18.850 138.161 20.879
202203 20.660 138.822 22.775
202206 21.170 142.347 22.759
202209 22.100 144.661 23.379
202212 21.780 145.763 22.867
202303 21.370 146.865 22.268
202306 20.930 150.280 21.314
202309 20.620 151.492 20.830
202312 19.640 152.924 19.654
202403 20.670 153.035 20.670

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


Mphasis  (BOM:526299) 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.

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

Shiller PE Ratio=Share Price/E10
=2372.90/69.73
=34.03

* 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 Mphasis was 57.98. The lowest was 8.64. And the median was 32.38.


Be Aware

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


Mphasis E10 Related Terms

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


Mphasis (BOM:526299) Business Description

Traded in Other Exchanges
Address
Marathalli Outer Ring Road, Bagmane World Technology Center, Doddanakhundi Village, Mahadevapura, Bengaluru, KA, IND, 560 048
Mphasis Ltd is an IT solutions provider which offers application development and integration, business process outsourcing, and infrastructure services such as architecture guidance. The company was formed after the merger of the U.S.-based IT consulting company Mphasis and the Indian IT services company BFL Software. Mphasis serves clients in the financial services, healthcare, telecom, retail, logistics, and technology industries. Mphasis has more than 30 offices globally, with delivery centers in India, Sri Lanka, China, Australia, Japan, North America, and Europe. The company operates through four primary segments: banking and financial services, insurance, technology media and telecom, logistics and transportation, and others.

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