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RWS Holdings (LSE:RWS) E10 : £0.12 (As of Sep. 2023)


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What is RWS Holdings 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.

RWS Holdings's adjusted earnings per share data for the fiscal year that ended in Sep. 2023 was £-0.071. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is £0.12 for the trailing ten years ended in Sep. 2023.

During the past 12 months, RWS Holdings's average E10 Growth Rate was -7.70% per year. During the past 3 years, the average E10 Growth Rate was 6.30% per year. During the past 5 years, the average E10 Growth Rate was 9.70% per year. During the past 10 years, the average E10 Growth Rate was 10.50% 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 RWS Holdings was 26.00% per year. The lowest was 6.30% per year. And the median was 11.90% per year.

As of today (2024-05-01), RWS Holdings's current stock price is £ 1.726. RWS Holdings's E10 for the fiscal year that ended in Sep. 2023 was £0.12. RWS Holdings's Shiller PE Ratio of today is 14.38.

During the past 13 years, the highest Shiller PE Ratio of RWS Holdings was 82.78. The lowest was 14.23. And the median was 44.60.


RWS Holdings E10 Historical Data

The historical data trend for RWS Holdings'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.

RWS Holdings E10 Chart

RWS Holdings Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.09 0.10 0.11 0.13 0.12

RWS Holdings Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 0.11 - 0.13 - 0.12

Competitive Comparison of RWS Holdings's E10

For the Specialty Business Services subindustry, RWS Holdings'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.


RWS Holdings's Shiller PE Ratio Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, RWS Holdings's Shiller PE Ratio distribution charts can be found below:

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



RWS Holdings 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, RWS Holdings's adjusted earnings per share data for the fiscal year that ended in Sep. 2023 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Sep. 2023 (Change)*Current CPI (Sep. 2023)
=-0.071/130.1000*130.1000
=-0.071

Current CPI (Sep. 2023) = 130.1000.

RWS Holdings Annual Data

per_share_eps CPI Adj_EPS
201409 0.071 100.000 0.092
201509 0.073 100.200 0.095
201609 0.090 101.500 0.115
201709 0.109 104.300 0.136
201809 0.104 106.600 0.127
201909 0.164 108.400 0.197
202009 0.169 109.200 0.201
202109 0.109 112.400 0.126
202209 0.160 122.300 0.170
202309 -0.071 130.100 -0.071

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


RWS Holdings  (LSE:RWS) 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.

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

Shiller PE Ratio=Share Price/E10
=1.726/0.12
=14.38

* 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 RWS Holdings was 82.78. The lowest was 14.23. And the median was 44.60.


Be Aware

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


RWS Holdings E10 Related Terms

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


RWS Holdings (LSE:RWS) Business Description

Traded in Other Exchanges
Address
Europa House, Chiltern Park, Chiltern Hill, Chalfont Saint Peter, Buckinghamshire, GBR, SL9 9FG
RWS Holdings PLC is a United Kingdom-based company that provides patent translation, intellectual property, and language support services. The company operates in four reportable segments; Language Services, Regulated Industries, IP Services, and Language, and Content Technology. The majority of revenue is derived from the Language services segment. Geographically, it derives a majority of its revenue from the United States of America, while it also operates in Continental Europe, United States of America and Rest of the world.

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