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Ciena (CIEN) E10 : $1.91 (As of Apr. 2024)


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What is Ciena 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.

Ciena's adjusted earnings per share data for the three months ended in Apr. 2024 was $-0.120. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.91 for the trailing ten years ended in Apr. 2024.

During the past 12 months, Ciena's average E10 Growth Rate was 12.40% per year. During the past 3 years, the average E10 Growth Rate was 53.80% 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 Ciena was 53.80% per year. The lowest was -6.40% per year. And the median was 28.80% per year.

As of today (2024-07-24), Ciena's current stock price is $50.67. Ciena's E10 for the quarter that ended in Apr. 2024 was $1.91. Ciena's Shiller PE Ratio of today is 26.53.

During the past 13 years, the highest Shiller PE Ratio of Ciena was 472.67. The lowest was 23.29. And the median was 38.97.


Ciena E10 Historical Data

The historical data trend for Ciena'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.

Ciena E10 Chart

Ciena Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.16 0.50 1.11 1.48 1.82

Ciena Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
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 1.70 1.73 1.82 1.87 1.91

Competitive Comparison of Ciena's E10

For the Communication Equipment subindustry, Ciena'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.


Ciena's Shiller PE Ratio Distribution in the Hardware Industry

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

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



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

Adj_EPS= Earnings per Share (Diluted) /CPI of Apr. 2024 (Change)*Current CPI (Apr. 2024)
=-0.12/132.2892*132.2892
=-0.120

Current CPI (Apr. 2024) = 132.2892.

Ciena Quarterly Data

per share eps CPI Adj_EPS
201407 0.150 100.520 0.197
201410 -0.290 100.176 -0.383
201501 -0.170 98.604 -0.228
201504 0.170 99.824 0.225
201507 0.190 100.691 0.250
201510 -0.100 100.346 -0.132
201601 -0.080 99.957 -0.106
201604 0.100 100.947 0.131
201607 0.230 101.524 0.300
201610 0.250 101.988 0.324
201701 0.030 102.456 0.039
201704 0.250 103.167 0.321
201707 0.390 103.278 0.500
201710 7.320 104.070 9.305
201801 -3.290 104.578 -4.162
201804 0.090 105.708 0.113
201807 0.340 106.324 0.423
201810 0.340 106.695 0.422
201901 0.210 106.200 0.262
201904 0.330 107.818 0.405
201907 0.550 108.250 0.672
201910 0.510 108.577 0.621
202001 0.400 108.841 0.486
202004 0.590 108.173 0.722
202007 0.910 109.318 1.101
202010 0.420 109.861 0.506
202101 0.350 110.364 0.420
202104 0.660 112.673 0.775
202107 1.520 115.183 1.746
202110 0.660 116.696 0.748
202201 0.290 118.619 0.323
202204 0.250 121.978 0.271
202207 0.070 125.002 0.074
202210 0.390 125.734 0.410
202301 0.510 126.223 0.535
202304 0.380 127.992 0.393
202307 0.200 128.974 0.205
202310 0.620 129.810 0.632
202401 0.340 130.124 0.346
202404 -0.120 132.289 -0.120

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


Ciena  (NYSE:CIEN) 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.

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

Shiller PE Ratio=Share Price/E10
=50.67/1.91
=26.53

* 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 Ciena was 472.67. The lowest was 23.29. And the median was 38.97.


Be Aware

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


Ciena E10 Related Terms

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


Ciena (CIEN) Business Description

Address
7035 Ridge Road, Hanover, MD, USA, 21076
Ciena Corp is a network and technology company. It provides network hardware, software, and services that support the transport, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks. It serves various industries such as communication services providers, web-scale providers, cable operators, government, and large enterprises world-wide. The business activities function through Networking Platforms; Platform Software and Services; Blue Planet Automation Software, and Global Services segments. Geographically, its presence is seen in the markets of the United States, Canada, the Caribbean, Latin America, Europe, the Middle East, Africa, the Asia Pacific, Japan, and India. The maximum revenue is generated from Americas.
Executives
David M Rothenstein officer: Sr. VP, General Counsel 7035 RIDGE ROAD, HANOVER MD 21076
Gary B Smith director, officer: President, CEO C/O CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076
Brodie Gage officer: SVP Global Products & Supply 2351 ALFRED-NOBEL BLVD, SUITE N-300, SAINT LAURENT A8 H4S 2A9
Dino Diperna officer: SVP Global R&D 385 TERRY FOX DR, OTTAWA A6 K2K OL1
Jason Phipps officer: SVP Global Sales and Marketing 7410 RIDGE RD, HANOVER MD 21076
Joseph Cumello officer: SVP, General Mgr. Blue Planet 7035 RIDGE RD, HANOVER MD 21076
Scott Mcfeely officer: SVP, Networking Platforms 7035 RIDGE RD, HANOVER MD 21076
Mary G Puma director AXCELIS TECHNOLOGIES INC., 108 CHERRY HILL DRIVE, BEVERLY MA 01915
Andrew C Petrik officer: VP, CONTROLLER 7035 RIDGE ROAD, HANOVER MD 21076
Sheela Kosaraju officer: SVP, General Counsel 43-51 WORSHIP ST, LONDON X0 EC2A 2DX
Stephen B Alexander officer: SVP, Chief Technology Officer C/O CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076
Rick Hamilton officer: SVP, Software and Services 9500 AMBERGIEN, AUSTIN TX 78729
Moylan James E Jr officer: SVP Finance, CFO CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076
Judith M Obrien director 855 MAUDE AVENUE, MOUNTAIN VIEW CA 94043
Thomas Michael Nevens director C/O BORLAND SOFTWARE CORPORATION, 20450 STEVENS CREEK BLVD, SUITE 800, CUPERTINO CA 95014