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Equinix (FRA:EQN2) E10 : €5.96 (As of Dec. 2024)


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What is Equinix 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.

Equinix's adjusted earnings per share data for the three months ended in Dec. 2024 was €-0.134. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €5.96 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Equinix's average E10 Growth Rate was 34.60% per year. During the past 3 years, the average E10 Growth Rate was 26.10% per year. During the past 5 years, the average E10 Growth Rate was 22.50% per year. During the past 10 years, the average E10 Growth Rate was 23.30% 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 Equinix was 72.30% per year. The lowest was 16.50% per year. And the median was 20.80% per year.

As of today (2025-03-14), Equinix's current stock price is €762.40. Equinix's E10 for the quarter that ended in Dec. 2024 was €5.96. Equinix's Shiller PE Ratio of today is 127.92.

During the past 13 years, the highest Shiller PE Ratio of Equinix was 450.85. The lowest was 133.19. And the median was 261.97.


Equinix E10 Historical Data

The historical data trend for Equinix'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.

Equinix E10 Chart

Equinix 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 2.10 2.73 3.53 4.23 5.96

Equinix 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 4.23 4.42 4.80 4.79 5.96

Competitive Comparison of Equinix's E10

For the REIT - Specialty subindustry, Equinix'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.


Equinix's Shiller PE Ratio Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Equinix's Shiller PE Ratio distribution charts can be found below:

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



Equinix 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, Equinix'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)
=-0.134/133.1571*133.1571
=-0.134

Current CPI (Dec. 2024) = 133.1571.

Equinix Quarterly Data

per share eps CPI Adj_EPS
201503 1.238 99.621 1.655
201506 0.918 100.684 1.214
201509 0.633 100.392 0.840
201512 0.165 99.792 0.220
201603 -0.413 100.470 -0.547
201606 0.570 101.688 0.746
201609 0.642 101.861 0.839
201612 0.815 101.863 1.065
201703 0.533 102.862 0.690
201706 0.516 103.349 0.665
201709 0.856 104.136 1.095
201712 0.693 104.011 0.887
201803 0.641 105.290 0.811
201806 0.728 106.317 0.912
201809 1.328 106.507 1.660
201812 1.195 105.998 1.501
201903 1.274 107.251 1.582
201906 1.496 108.070 1.843
201909 1.280 108.329 1.573
201912 1.314 108.420 1.614
202003 1.249 108.902 1.527
202006 1.350 108.767 1.653
202009 0.628 109.815 0.761
202012 0.469 109.897 0.568
202103 1.462 111.754 1.742
202106 0.631 114.631 0.733
202109 1.428 115.734 1.643
202112 1.204 117.630 1.363
202203 1.471 121.301 1.615
202206 2.242 125.017 2.388
202209 2.323 125.227 2.470
202212 1.312 125.222 1.395
202303 2.587 127.348 2.705
202306 2.040 128.729 2.110
202309 2.745 129.860 2.815
202312 2.201 129.419 2.265
202403 2.236 131.776 2.259
202406 2.936 132.554 2.949
202409 2.793 133.029 2.796
202412 -0.134 133.157 -0.134

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


Equinix  (FRA:EQN2) 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.

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

Shiller PE Ratio=Share Price/E10
=762.40/5.96
=127.92

* 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 Equinix was 450.85. The lowest was 133.19. And the median was 261.97.


Be Aware

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


Equinix E10 Related Terms

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


Equinix Business Description

Address
One Lagoon Drive, Redwood City, CA, USA, 94065
Equinix operates 260 data centers in 71 markets worldwide. It generates 44% of total revenue in the Americas, 35% in Europe, the Middle East, and Africa, and 21% in Asia-Pacific. The firm has more than 10,000 customers, including 2,100 network providers, that are dispersed over five verticals: cloud and IT services, content providers, network and mobile services, financial services, and enterprise. About 70% of Equinix's revenue comes from renting space to tenants and related services, and more than 15% comes from interconnection. Equinix operates as a real estate investment trust.

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