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Avaya Holdings (FRA:1KU) E10 : €-2.56 (As of Jun. 2022)


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What is Avaya Holdings 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.

Avaya Holdings's adjusted earnings per share data for the fiscal year that ended in Sep. 2021 was €-0.170. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €-2.56 for the trailing ten years ended in Sep. 2021.

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 (2024-05-12), Avaya Holdings's current stock price is € 0.216. Avaya Holdings's E10 for the fiscal year that ended in Sep. 2021 was €-2.56. Avaya Holdings's Shiller PE Ratio of today is .


Avaya Holdings E10 Historical Data

The historical data trend for Avaya Holdings'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.

Avaya Holdings E10 Chart

Avaya Holdings Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - -1.72 -2.26 -2.58 -2.56

Avaya Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 - -2.56 - - -

Competitive Comparison of Avaya Holdings's E10

For the Software - Application subindustry, Avaya Holdings'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.


Avaya Holdings's Shiller PE Ratio Distribution in the Software Industry

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

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



Avaya Holdings 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, Avaya Holdings's adjusted earnings per share data for the fiscal year that ended in Sep. 2021 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Sep. 2021 (Change)*Current CPI (Sep. 2021)
=-0.17/115.7343*115.7343
=-0.170

Current CPI (Sep. 2021) = 115.7343.

Avaya Holdings Annual Data

per_share_eps CPI Adj_EPS
201209 -0.663 97.633 -0.786
201309 -0.630 98.790 -0.738
201409 -0.465 100.428 -0.536
201509 -1.733 100.392 -1.998
201609 -1.381 101.861 -1.569
201709 -1.625 104.136 -1.806
201809 -5.193 106.507 -5.643
201909 -5.502 108.329 -5.878
202009 -6.325 109.815 -6.666
202109 -0.170 115.734 -0.170

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


Avaya Holdings  (FRA:1KU) 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.


Be Aware

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


Avaya Holdings E10 Related Terms

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


Avaya Holdings (FRA:1KU) Business Description

Traded in Other Exchanges
N/A
Address
2605 Meridian Parkway, Suite 200, Durham, NC, USA, 27713
Avaya Holdings Corp provides digital communications products, solutions, and services for businesses. The company has two operating segments namely Products and Solutions, and Services. Products and Solutions offer Unified Communications and Contact Center platforms, applications and devices. It helps to offer an open, extensible development platform so that customers and third parties can easily create custom applications and automated workflows for their unique needs. Whereas Services consists of three business areas: Global Support Services, Enterprise Cloud and Managed Services and Professional Services. The company generates maximum revenue from the Services segment. Geographically, it derives a majority of revenue from the U.S.

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