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CGI (LTS:0A18) E10 : C$5.51 (As of Jun. 2024)


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What is CGI 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.

CGI's adjusted earnings per share data for the three months ended in Jun. 2024 was C$1.910. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is C$5.51 for the trailing ten years ended in Jun. 2024.

During the past 12 months, CGI's average E10 Growth Rate was 10.90% per year. During the past 3 years, the average E10 Growth Rate was 18.10% per year. During the past 5 years, the average E10 Growth Rate was 16.20% per year. During the past 10 years, the average E10 Growth Rate was 17.50% 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 CGI was 23.00% per year. The lowest was 12.50% per year. And the median was 17.95% per year.

As of today (2024-12-15), CGI's current stock price is C$162.25. CGI's E10 for the quarter that ended in Jun. 2024 was C$5.51. CGI's Shiller PE Ratio of today is 29.45.

During the past 13 years, the highest Shiller PE Ratio of CGI was 44.85. The lowest was 23.90. And the median was 33.27.


CGI E10 Historical Data

The historical data trend for CGI'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.

CGI E10 Chart

CGI Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 4.38 4.94 -

CGI 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 4.94 5.08 5.51 5.51 -

Competitive Comparison of CGI's E10

For the Information Technology Services subindustry, CGI'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.


CGI's Shiller PE Ratio Distribution in the Software Industry

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

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



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

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2024 (Change)*Current CPI (Jun. 2024)
=1.91/127.5217*127.5217
=1.910

Current CPI (Jun. 2024) = 127.5217.

CGI Quarterly Data

per share eps CPI Adj_EPS
201409 0.660 99.394 0.847
201412 0.740 98.367 0.959
201503 0.780 99.789 0.997
201506 0.800 100.500 1.015
201509 0.730 100.421 0.927
201512 0.750 99.947 0.957
201603 0.900 101.054 1.136
201606 0.890 102.002 1.113
201609 0.890 101.765 1.115
201612 0.890 101.449 1.119
201703 0.900 102.634 1.118
201706 0.920 103.029 1.139
201709 0.700 103.345 0.864
201712 0.980 103.345 1.209
201803 0.940 105.004 1.142
201806 1.000 105.557 1.208
201809 1.030 105.636 1.243
201812 1.110 105.399 1.343
201903 1.140 106.979 1.359
201906 1.120 107.690 1.326
201909 1.190 107.611 1.410
201912 1.060 107.769 1.254
202003 1.180 107.927 1.394
202006 1.000 108.401 1.176
202009 0.960 108.164 1.132
202012 1.320 108.559 1.551
202103 1.340 110.298 1.549
202106 1.360 111.720 1.552
202109 1.390 112.905 1.570
202112 1.490 113.774 1.670
202203 1.530 117.646 1.658
202206 1.510 120.806 1.594
202209 1.510 120.648 1.596
202212 1.600 120.964 1.687
202303 1.760 122.702 1.829
202306 1.750 124.203 1.797
202309 1.750 125.230 1.782
202312 1.670 125.072 1.703
202403 1.830 126.258 1.848
202406 1.910 127.522 1.910

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


CGI  (LTS:0A18) 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.

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

Shiller PE Ratio=Share Price/E10
=162.25/5.51
=29.45

* 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 CGI was 44.85. The lowest was 23.90. And the median was 33.27.


Be Aware

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


CGI E10 Related Terms

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


CGI Business Description

Traded in Other Exchanges
Address
1350 Rene-Levesque Boulevard West, 25th Floor, Montreal, QC, CAN, H3G 1T4
CGI is a Canada-based IT-services provider with an embedded position in North America and Europe. The company generates more than CAD 14 billion in annual revenue, employs over 90,000 personnel, and operates across 400 offices in 40 countries. CGI offers a broad portfolio of services such as consulting, systems integration, application maintenance, and business process services. Its largest vertical market is government, which contributes more than a third of group revenue.

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