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NCC Group (LSE:NCC) E10 : £0.02 (As of Nov. 2023)


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What is NCC Group 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.

NCC Group's adjusted earnings per share data for the fiscal year that ended in May. 2023 was £-0.015. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is £0.02 for the trailing ten years ended in May. 2023.

During the past 5 years, the average E10 Growth Rate was -5.60% per year. During the past 10 years, the average E10 Growth Rate was -8.00% 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 NCC Group was 7.70% per year. The lowest was -15.70% per year. And the median was -12.60% per year.

As of today (2024-06-14), NCC Group's current stock price is £ 1.44. NCC Group's E10 for the fiscal year that ended in May. 2023 was £0.02. NCC Group's Shiller PE Ratio of today is 72.00.

During the past 13 years, the highest Shiller PE Ratio of NCC Group was 166.25. The lowest was 22.20. And the median was 60.27.


NCC Group E10 Historical Data

The historical data trend for NCC Group'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.

NCC Group E10 Chart

NCC Group Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.03 0.02 0.02 0.03 0.02

NCC Group Semi-Annual Data
May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23
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 - 0.03 - 0.02 -

Competitive Comparison of NCC Group's E10

For the Software - Application subindustry, NCC Group'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.


NCC Group's Shiller PE Ratio Distribution in the Software Industry

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

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



NCC Group 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, NCC Group's adjusted earnings per share data for the fiscal year that ended in May. 2023 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of May. 2023 (Change)*Current CPI (May. 2023)
=-0.015/129.1000*129.1000
=-0.015

Current CPI (May. 2023) = 129.1000.

NCC Group Annual Data

per_share_eps CPI Adj_EPS
201405 0.086 99.600 0.111
201505 0.078 100.100 0.101
201605 0.024 100.800 0.031
201705 -0.204 103.500 -0.254
201805 0.024 105.900 0.029
201905 0.048 107.900 0.057
202005 0.023 108.600 0.027
202105 0.035 111.000 0.041
202205 0.074 119.700 0.080
202305 -0.015 129.100 -0.015

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


NCC Group  (LSE:NCC) 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.

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

Shiller PE Ratio=Share Price/E10
=1.44/0.02
=72.00

* 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 NCC Group was 166.25. The lowest was 22.20. And the median was 60.27.


Be Aware

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


NCC Group E10 Related Terms

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


NCC Group (LSE:NCC) Business Description

Traded in Other Exchanges
Address
2 Hardman Boulevard, XYZ Building, Spinningfields, Manchester, GBR, M3 3AQ
NCC Group PLC is a U.K.-based provider of information assurance software solutions to the transportation, finance, retail, Internet of Things, and oil and gas end markets. The firm's operations are organized in below divisions: Assurance, which offers security and risks consulting services; group escrow, which offers software escrow services with a third-party agent; and domain services, which maintains and publishes trust security standards. Roughly half of the firm's revenue is generated in the United Kingdom, with the rest coming from Europe and the rest of the world.

NCC Group (LSE:NCC) Headlines

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