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Extreme Networks (FRA:EXM) E10 : €-0.26 (As of Sep. 2024)


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What is Extreme Networks 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.

Extreme Networks's adjusted earnings per share data for the three months ended in Sep. 2024 was €-0.072. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €-0.26 for the trailing ten years ended in Sep. 2024.

During the past 3 years, the average E10 Growth Rate was 2.00% per year. During the past 5 years, the average E10 Growth Rate was -6.70% per year. During the past 10 years, the average E10 Growth Rate was -28.30% 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 Extreme Networks was 72.90% per year. The lowest was -135.10% per year. And the median was -14.50% per year.

As of today (2025-01-18), Extreme Networks's current stock price is €16.87. Extreme Networks's E10 for the quarter that ended in Sep. 2024 was €-0.26. Extreme Networks's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Extreme Networks was 605.00. The lowest was 74.60. And the median was 245.00.


Extreme Networks E10 Historical Data

The historical data trend for Extreme Networks'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.

Extreme Networks E10 Chart

Extreme Networks Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.28 -0.28 -0.35 -0.30 -0.30

Extreme Networks Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -0.28 -0.24 -0.27 -0.30 -0.26

Competitive Comparison of Extreme Networks's E10

For the Communication Equipment subindustry, Extreme Networks'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.


Extreme Networks's Shiller PE Ratio Distribution in the Hardware Industry

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

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



Extreme Networks 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, Extreme Networks's adjusted earnings per share data for the three months ended in Sep. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=-0.072/133.0289*133.0289
=-0.072

Current CPI (Sep. 2024) = 133.0289.

Extreme Networks Quarterly Data

per share eps CPI Adj_EPS
201412 -0.105 99.070 -0.141
201503 -0.222 99.621 -0.296
201506 -0.143 100.684 -0.189
201509 -0.098 100.392 -0.130
201512 -0.064 99.792 -0.085
201603 -0.090 100.470 -0.119
201606 -0.018 101.688 -0.024
201609 -0.045 101.861 -0.059
201612 -0.038 101.863 -0.050
201703 -0.047 102.862 -0.061
201706 0.098 103.349 0.126
201709 0.034 104.136 0.043
201712 -0.237 104.011 -0.303
201803 -0.097 105.290 -0.123
201806 -0.043 106.317 -0.054
201809 -0.069 106.507 -0.086
201812 0.053 105.998 0.067
201903 -0.053 107.251 -0.066
201906 -0.124 108.070 -0.153
201909 -0.281 108.329 -0.345
201912 -0.180 108.420 -0.221
202003 -0.335 108.902 -0.409
202006 -0.160 108.767 -0.196
202009 -0.059 109.815 -0.071
202012 -0.016 109.897 -0.019
202103 0.025 111.754 0.030
202106 0.066 114.631 0.077
202109 0.085 115.734 0.098
202112 0.089 117.630 0.101
202203 0.091 121.301 0.100
202206 0.038 125.017 0.040
202209 0.091 125.227 0.097
202212 0.123 125.222 0.131
202303 0.159 127.348 0.166
202306 0.175 128.729 0.181
202309 0.197 129.860 0.202
202312 0.028 129.419 0.029
202403 -0.460 131.776 -0.464
202406 -0.390 132.554 -0.391
202409 -0.072 133.029 -0.072

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


Extreme Networks  (FRA:EXM) 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.

During the past 13 years, the highest Shiller P/E Ratio of Extreme Networks was 605.00. The lowest was 74.60. And the median was 245.00.


Be Aware

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


Extreme Networks E10 Related Terms

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


Extreme Networks Business Description

Traded in Other Exchanges
Address
2121 RDU Center Drive, Suite 300, Morrisville, NC, USA, 27560
Extreme Networks Inc provides cloud networking solutions and industry services and support. Extreme designs, develops, and manufactures wired, wireless, and software-defined wide area-network (SD- WAN) infrastructure equipment, software and cloud-based network management solutions. The company's cloud solution is a single platform that offers unified network management of wireless access points, switches, and SD-WAN. The company operates in a single segment which develops and markets network infrastructure equipment. Roughly half of the firm's revenue is generated in the Americas, with the rest coming from Europe, the Middle East, Africa, and Asia-Pacific.

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