GURUFOCUS.COM » STOCK LIST » Technology » Software » LTIMindtree Ltd (BOM:540005) » Definitions » E10

LTIMindtree (BOM:540005) E10 : ₹126.43 (As of Sep. 2024)


View and export this data going back to 2016. Start your Free Trial

What is LTIMindtree 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.

LTIMindtree's adjusted earnings per share data for the three months ended in Sep. 2024 was ₹42.170. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₹126.43 for the trailing ten years ended in Sep. 2024.

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 (2024-12-12), LTIMindtree's current stock price is ₹6668.75. LTIMindtree's E10 for the quarter that ended in Sep. 2024 was ₹126.43. LTIMindtree's Shiller PE Ratio of today is 52.75.

During the past 13 years, the highest Shiller PE Ratio of LTIMindtree was 51.90. The lowest was 38.20. And the median was 45.35.


LTIMindtree E10 Historical Data

The historical data trend for LTIMindtree'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.

LTIMindtree E10 Chart

LTIMindtree 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 - - - - 120.65

LTIMindtree 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 - - 120.65 123.63 126.43

Competitive Comparison of LTIMindtree's E10

For the Information Technology Services subindustry, LTIMindtree'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.


LTIMindtree's Shiller PE Ratio Distribution in the Software Industry

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

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



LTIMindtree 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, LTIMindtree'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)
=42.17/157.8822*157.8822
=42.170

Current CPI (Sep. 2024) = 157.8822.

LTIMindtree Quarterly Data

per share eps CPI Adj_EPS
201403 0.000 91.425 0.000
201503 0.000 97.163 0.000
201506 10.256 99.841 16.218
201509 12.276 101.753 19.048
201512 13.181 102.901 20.224
201603 13.410 102.518 20.652
201606 13.883 105.961 20.686
201609 13.370 105.961 19.921
201612 14.240 105.196 21.372
201703 14.600 105.196 21.912
201706 15.290 107.109 22.538
201709 15.600 109.021 22.592
201712 16.160 109.404 23.321
201803 16.520 109.786 23.757
201806 20.600 111.317 29.217
201809 22.600 115.142 30.989
201812 21.630 115.142 29.659
201903 21.600 118.202 28.851
201906 20.290 120.880 26.501
201909 20.520 123.175 26.302
201912 21.500 126.235 26.890
202003 24.300 124.705 30.765
202006 23.740 127.000 29.513
202009 25.950 130.118 31.487
202012 29.530 130.889 35.620
202103 31.040 131.771 37.191
202106 28.270 134.084 33.288
202109 31.410 135.847 36.505
202112 35.440 138.161 40.499
202203 63.251 138.822 71.935
202206 37.370 142.347 41.448
202209 40.110 144.661 43.776
202212 33.780 145.763 36.589
202303 37.570 146.865 40.388
202306 38.850 150.280 40.815
202309 39.170 151.492 40.822
202312 39.400 152.924 40.677
202403 37.060 153.035 38.234
202406 38.230 155.789 38.744
202409 42.170 157.882 42.170

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


LTIMindtree  (BOM:540005) 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.

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

Shiller PE Ratio=Share Price/E10
=6668.75/126.43
=52.75

* 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 LTIMindtree was 51.90. The lowest was 38.20. And the median was 45.35.


Be Aware

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


LTIMindtree E10 Related Terms

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


LTIMindtree Business Description

Traded in Other Exchanges
Address
Gate No. 5, Saki Vihar Road, Technology Tower 1, Powai, Mumbai, MH, IND, 400 072
LTIMindtree Ltd is a world-wide technology consulting and digital solutions company that enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth by harnessing digital technologies. The company's segment includes Banking, Financial Services and Insurance; Technology, Media & Communications; Manufacturing and Resources; Consumer Business; and Healthcare, Life sciences & Public Services. It derives maximum revenue from Banking, Financial Services and Insurance segment.

LTIMindtree Headlines

No Headlines