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Gartner (Gartner) E10 : $5.14 (As of Mar. 2024)


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What is Gartner 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.

Gartner's adjusted earnings per share data for the three months ended in Mar. 2024 was $2.670. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $5.14 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Gartner's average E10 Growth Rate was 21.50% per year. During the past 3 years, the average E10 Growth Rate was 34.90% per year. During the past 5 years, the average E10 Growth Rate was 27.00% per year. During the past 10 years, the average E10 Growth Rate was 15.10% 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 Gartner was 38.90% per year. The lowest was -4.00% per year. And the median was 15.80% per year.

As of today (2024-05-18), Gartner's current stock price is $450.26. Gartner's E10 for the quarter that ended in Mar. 2024 was $5.14. Gartner's Shiller PE Ratio of today is 87.60.

During the past 13 years, the highest Shiller PE Ratio of Gartner was 130.92. The lowest was 47.30. And the median was 77.96.


Gartner E10 Historical Data

The historical data trend for Gartner'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.

Gartner E10 Chart

Gartner Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.76 1.97 2.88 3.85 4.84

Gartner Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 4.46 4.68 4.84 5.14

Competitive Comparison of Gartner's E10

For the Information Technology Services subindustry, Gartner'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.


Gartner's Shiller PE Ratio Distribution in the Software Industry

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

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



Gartner 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, Gartner's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=2.67/131.7762*131.7762
=2.670

Current CPI (Mar. 2024) = 131.7762.

Gartner Quarterly Data

per share eps CPI Adj_EPS
201406 0.580 100.560 0.760
201409 0.380 100.428 0.499
201412 0.660 99.070 0.878
201503 0.320 99.621 0.423
201506 0.610 100.684 0.798
201509 0.360 100.392 0.473
201512 0.780 99.792 1.030
201603 0.540 100.470 0.708
201606 0.620 101.688 0.803
201609 0.360 101.861 0.466
201612 0.790 101.863 1.022
201703 0.430 102.862 0.551
201706 -1.030 103.349 -1.313
201709 -0.530 104.136 -0.671
201712 1.160 104.011 1.470
201803 -0.220 105.290 -0.275
201806 0.500 106.317 0.620
201809 0.130 106.507 0.161
201812 0.920 105.998 1.144
201903 0.230 107.251 0.283
201906 1.130 108.070 1.378
201909 0.460 108.329 0.560
201912 0.750 108.420 0.912
202003 0.830 108.902 1.004
202006 0.610 108.767 0.739
202009 0.190 109.815 0.228
202012 1.330 109.897 1.595
202103 1.840 111.754 2.170
202106 3.130 114.631 3.598
202109 1.760 115.734 2.004
202112 2.500 117.630 2.801
202203 2.080 121.301 2.260
202206 2.530 125.017 2.667
202209 2.170 125.227 2.283
202212 3.210 125.222 3.378
202303 3.680 127.348 3.808
202306 2.480 128.729 2.539
202309 2.260 129.860 2.293
202312 2.640 129.419 2.688
202403 2.670 131.776 2.670

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


Gartner  (NYSE:IT) 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.

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

Shiller PE Ratio=Share Price/E10
=450.26/5.14
=87.60

* 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 Gartner was 130.92. The lowest was 47.30. And the median was 77.96.


Be Aware

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


Gartner E10 Related Terms

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


Gartner (Gartner) Business Description

Traded in Other Exchanges
Address
56 Top Gallant Road, P.O. Box 10212, Stamford, CT, USA, 06902-7700
Based in Stamford, Conn., Gartner provides independent research and analysis on information technology and other related technology industries. Its research is delivered to clients' desktops in the form of reports, briefings, and updates. Typical clients are chief information officers and other business executives who help plan companies' IT budgets. Gartner also provides consulting services and hosted nearly 80 IT conferences across the globe in 2007.
Executives
Claire Herkes officer: EVP, Conferences 56 TOP GALLANT ROAD, STAMFORD CT 06902
Robin B Kranich officer: SVP,Research Ops & Bus Dvlpmt 56 TOP GALLANT RD, STAMFORD CT 06902
Craig Safian officer: EVP & CFO 56 TOP GALLANT ROAD, STAMFORD CT 06904
Valentin Sribar officer: SVP, Research & Advisory 56 TOP GALLANT ROAD, STAMFORD CT 06902
Alwyn Dawkins officer: EVP, Conferences 56 TOP GALLANT ROAD, STAMFORD CT 06902
Akhil Jain officer: SVP, Consulting 56 TOP GALLANT ROAD, STAMFORD CT 06902
Richard J Bressler director 1515 BROADWAY, NEW YORK NY 10036
James C Smith director C/O FIRST HEALTH GROUP CORP, 3200 HIGHLAND AVENUE, DOWNERS GROVE IL 60515
Wartinbee William James Iii officer: SVP, Global Sales Strat & Ops 56 TOP GALLANT ROAD, STAMFORD CT 06902
Anne Sutherland Fuchs director
Joseph P. Beck officer: EVP, Global Technology Sales 56 TOP GALLANT RD., STAMFORD CT 06902
Eugene A Hall director, officer: CEO ONE ADP BLVD, ROSELAND NJ 07068
Altaf Rupani officer: EVP, Chief Information Officer 56 TOP GALLANT RD, STAMFORD CT 06902
Michael Fox Diliberto officer: SVP, Chief Information Officer 56 TOP GALLANT RD, STAMFORD CT 06904
Scott Hensel officer: EVP Consulting C/O GARTNER, INC., 56 TOP GALLANT RD., STAMFORD CT 06902

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