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Ebix Inc  (NAS:EBIX) E10: $1.89 (As of Sep. 2017)

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.

Ebix Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.760. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.89 for the trailing ten years ended in Sep. 2017.

As of today, Ebix Inc's current stock price is $76.55. Ebix Inc's E10 for the quarter that ended in Sep. 2017 was $1.89. Ebix Inc's Shiller PE Ratio of today is 40.50.

During the past 13 years, the highest Shiller PE Ratio of Ebix Inc was 438.40. The lowest was 10.29. And the median was 30.52.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Ebix Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.81 0.97 1.13 1.35 1.63

Ebix Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
E10 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 Premium Member Only Premium Member Only Premium Member Only 1.57 1.63 1.73 1.81 1.89

Competitive Comparison
* 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.


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.

For example, Ebix Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=0.76/246.819*246.819
=0.760

Current CPI (Sep. 2017) = 246.819.

Ebix Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.134 210.036 0.157
200803 0.156 213.528 0.180
200806 0.180 218.815 0.203
200809 0.207 218.783 0.234
200812 0.210 210.228 0.247
200903 0.230 212.709 0.267
200906 0.240 215.693 0.275
200909 0.250 215.969 0.286
200912 0.310 215.949 0.354
201003 0.320 217.631 0.363
201006 0.360 217.965 0.408
201009 0.430 218.439 0.486
201012 0.410 219.179 0.462
201103 0.370 223.467 0.409
201106 0.530 225.722 0.580
201109 0.410 226.889 0.446
201112 0.440 225.672 0.481
201203 0.400 229.392 0.430
201206 0.470 229.478 0.506
201209 0.460 231.407 0.491
201212 0.480 229.601 0.516
201303 0.450 232.773 0.477
201306 0.350 233.504 0.370
201309 0.340 234.149 0.358
201312 0.390 233.049 0.413
201403 0.400 236.293 0.418
201406 0.350 238.343 0.362
201409 0.470 238.031 0.487
201412 0.450 234.812 0.473
201503 0.510 236.119 0.533
201506 0.540 238.638 0.559
201509 0.590 237.945 0.612
201512 0.640 236.525 0.668
201603 0.670 238.132 0.694
201606 0.700 241.018 0.717
201609 0.740 241.428 0.757
201612 0.760 241.432 0.777
201703 0.830 243.801 0.840
201706 0.740 244.955 0.746
201709 0.760 246.819 0.760

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

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

Shiller PE Ratio=Share Price/E10
=76.55/1.89
=40.50

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

During the past 13 years, the highest Shiller P/E Ratio of Ebix Inc was 438.40. The lowest was 10.29. And the median was 30.52.


Be Aware

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


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