Switch to:
Genpact Ltd  (NYSE:G) E10: $0.94 (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.

Genpact Ltd's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.380. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.94 for the trailing ten years ended in Sep. 2017.

As of today, Genpact Ltd's current stock price is $31.27. Genpact Ltd's E10 for the quarter that ended in Sep. 2017 was $0.94. Genpact Ltd's Shiller PE Ratio of today is 33.27.

During the past 13 years, the highest Shiller PE Ratio of Genpact Ltd was 42.11. The lowest was 7.28. And the median was 30.86.


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.

Genpact Ltd 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 0.00 0.00 0.00 0.63 0.78

Genpact Ltd 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 3.12 0.78 0.84 0.90 0.94

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, Genpact Ltd'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)
=0.38/246.819*246.819
=0.380

Current CPI (Sep. 2017) = 246.819.

Genpact Ltd Quarterly Data

per share eps CPI Adj_EPS
200712 0.250 210.036 0.294
200803 0.090 213.528 0.104
200806 0.110 218.815 0.124
200809 0.150 218.783 0.169
200812 0.210 210.228 0.247
200903 0.140 212.709 0.162
200906 0.140 215.693 0.160
200909 0.150 215.969 0.171
200912 0.160 215.949 0.183
201003 0.130 217.631 0.147
201006 0.120 217.965 0.136
201009 0.180 218.439 0.203
201012 0.200 219.179 0.225
201103 0.160 223.467 0.177
201106 0.170 225.722 0.186
201109 0.210 226.889 0.228
201112 0.270 225.672 0.295
201203 0.170 229.392 0.183
201206 0.270 229.478 0.290
201209 0.110 231.407 0.117
201212 0.230 229.601 0.247
201303 0.200 232.773 0.212
201306 0.270 233.504 0.285
201309 0.300 234.149 0.316
201312 0.200 233.049 0.212
201403 0.210 236.293 0.219
201406 0.220 238.343 0.228
201409 0.210 238.031 0.218
201412 0.200 234.812 0.210
201503 0.200 236.119 0.209
201506 0.280 238.638 0.290
201509 0.310 237.945 0.322
201512 0.290 236.525 0.303
201603 0.270 238.132 0.280
201606 0.310 241.018 0.317
201609 0.330 241.428 0.337
201612 0.370 241.432 0.378
201703 0.260 243.801 0.263
201706 0.360 244.955 0.363
201709 0.380 246.819 0.380

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.

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

Shiller PE Ratio=Share Price/E10
=31.27/0.94
=33.27

* 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 Genpact Ltd was 42.11. The lowest was 7.28. And the median was 30.86.


Be Aware

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


Related Terms


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK