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International Business Machines (BUE:IBM) E10 : ARS782.68 (As of Dec. 2024)


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What is International Business Machines 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.

International Business Machines's adjusted earnings per share data for the three months ended in Dec. 2024 was ARS31,209.000. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ARS782.68 for the trailing ten years ended in Dec. 2024.

During the past 12 months, International Business Machines's average E10 Growth Rate was -6.10% per year. During the past 3 years, the average E10 Growth Rate was -6.80% per year. During the past 5 years, the average E10 Growth Rate was -5.20% per year. During the past 10 years, the average E10 Growth Rate was -1.30% 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.

During the past 13 years, the highest 3-Year average E10 Growth Rate of International Business Machines was 34.30% per year. The lowest was -6.80% per year. And the median was 10.35% per year.

As of today (2025-03-03), International Business Machines's current stock price is ARS20625.00. International Business Machines's E10 for the quarter that ended in Dec. 2024 was ARS782.68. International Business Machines's Shiller PE Ratio of today is 26.35.

During the past 13 years, the highest Shiller PE Ratio of International Business Machines was 26.52. The lowest was 7.08. And the median was 11.24.


International Business Machines E10 Historical Data

The historical data trend for International Business Machines'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.

International Business Machines E10 Chart

International Business Machines Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 356.09 492.31 768.60 2,046.49 782.68

International Business Machines 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 2,046.49 763.39 928.59 846.28 782.68

Competitive Comparison of International Business Machines's E10

For the Information Technology Services subindustry, International Business Machines'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.


International Business Machines's Shiller PE Ratio Distribution in the Software Industry

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

* The bar in red indicates where International Business Machines's Shiller PE Ratio falls into.



International Business Machines 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, International Business Machines'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)
=31209/133.1571*133.1571
=31,209.000

Current CPI (Dec. 2024) = 133.1571.

International Business Machines Quarterly Data

per share eps CPI Adj_EPS
201503 207.263 99.621 277.035
201506 318.027 100.684 420.599
201509 283.009 100.392 375.377
201512 594.084 99.792 792.711
201603 305.224 100.470 404.525
201606 364.871 101.688 477.786
201609 444.519 101.861 581.094
201612 748.238 101.863 978.113
201703 285.215 102.862 369.216
201706 408.902 103.349 526.838
201709 511.686 104.136 654.288
201712 -217.683 104.011 -278.682
201803 364.697 105.290 461.224
201806 650.934 106.317 815.266
201809 1,081.891 106.507 1,352.605
201812 810.658 105.998 1,018.368
201903 695.802 107.251 863.875
201906 1,255.480 108.070 1,546.931
201909 1,045.816 108.329 1,285.504
201912 2,456.695 108.420 3,017.212
202003 813.108 108.902 994.211
202006 1,040.592 108.767 1,273.933
202009 1,403.136 109.815 1,701.386
202012 1,228.838 109.897 1,488.929
202103 954.848 111.754 1,137.716
202106 1,392.531 114.631 1,617.579
202109 1,222.250 115.734 1,406.249
202112 2,595.443 117.630 2,938.053
202203 869.714 121.301 954.721
202206 1,841.049 125.017 1,960.926
202209 -4,918.830 125.227 -5,230.340
202212 4,962.440 125.222 5,276.910
202303 1,995.255 127.348 2,086.274
202306 4,128.000 128.729 4,270.007
202309 6,439.080 129.860 6,602.591
202312 12,815.500 129.419 13,185.618
202403 14,491.000 131.776 14,642.853
202406 17,551.800 132.554 17,631.685
202409 -3,421.800 133.029 -3,425.098
202412 31,209.000 133.157 31,209.000

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


International Business Machines  (BUE:IBM) 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.

International Business Machines's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=20625.00/782.68
=26.35

* 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 International Business Machines was 26.52. The lowest was 7.08. And the median was 11.24.


Be Aware

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


International Business Machines E10 Related Terms

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


International Business Machines Business Description

Address
One New Orchard Road, Armonk, NY, USA, 10504
IBM looks to be a part of every aspect of an enterprise's IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 300,000 people. The company has a robust roster of business partners to service its clients, which include 95% of all Fortune 500 companies. Primary products include its mainframes, Red Hat software, transaction processing software, and IT consulting.