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F5 (LTS:0IL6) E10 : $7.47 (As of Sep. 2024)


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What is F5 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.

F5's adjusted earnings per share data for the three months ended in Sep. 2024 was $2.800. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $7.47 for the trailing ten years ended in Sep. 2024.

During the past 12 months, F5's average E10 Growth Rate was 8.40% per year. During the past 3 years, the average E10 Growth Rate was 8.30% per year. During the past 5 years, the average E10 Growth Rate was 8.30% per year. During the past 10 years, the average E10 Growth Rate was 13.20% 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 F5 was 48.20% per year. The lowest was 8.30% per year. And the median was 19.70% per year.

As of today (2024-12-12), F5's current stock price is $259.89. F5's E10 for the quarter that ended in Sep. 2024 was $7.47. F5's Shiller PE Ratio of today is 34.79.

During the past 13 years, the highest Shiller PE Ratio of F5 was 62.46. The lowest was 19.33. And the median was 33.89.


F5 E10 Historical Data

The historical data trend for F5'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.

F5 E10 Chart

F5 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 5.42 5.98 6.58 6.95 7.47

F5 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 6.95 6.99 7.22 7.38 7.47

Competitive Comparison of F5's E10

For the Software - Infrastructure subindustry, F5'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.


F5's Shiller PE Ratio Distribution in the Software Industry

For the Software industry and Technology sector, F5's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where F5's Shiller PE Ratio falls into.



F5 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, F5's adjusted earnings per share data for the three months ended in Sep. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=2.8/133.0289*133.0289
=2.800

Current CPI (Sep. 2024) = 133.0289.

F5 Quarterly Data

per share eps CPI Adj_EPS
201412 1.210 99.070 1.625
201503 1.180 99.621 1.576
201506 1.290 100.684 1.704
201509 1.360 100.392 1.802
201512 1.280 99.792 1.706
201603 1.110 100.470 1.470
201606 1.370 101.688 1.792
201609 1.640 101.861 2.142
201612 1.440 101.863 1.881
201703 1.430 102.862 1.849
201706 1.520 103.349 1.957
201709 2.140 104.136 2.734
201712 1.410 104.011 1.803
201803 1.770 105.290 2.236
201806 1.990 106.317 2.490
201809 2.180 106.507 2.723
201812 2.160 105.998 2.711
201903 1.930 107.251 2.394
201906 1.430 108.070 1.760
201909 1.570 108.329 1.928
201912 1.620 108.420 1.988
202003 1.000 108.902 1.222
202006 1.140 108.767 1.394
202009 1.260 109.815 1.526
202012 1.410 109.897 1.707
202103 0.700 111.754 0.833
202106 1.460 114.631 1.694
202109 1.800 115.734 2.069
202112 1.510 117.630 1.708
202203 0.920 121.301 1.009
202206 1.370 125.017 1.458
202209 1.490 125.227 1.583
202212 1.200 125.222 1.275
202303 1.340 127.348 1.400
202306 1.480 128.729 1.529
202309 2.550 129.860 2.612
202312 2.320 129.419 2.385
202403 2.000 131.776 2.019
202406 2.440 132.554 2.449
202409 2.800 133.029 2.800

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


F5  (LTS:0IL6) 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.

F5's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=259.89/7.47
=34.79

* 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 F5 was 62.46. The lowest was 19.33. And the median was 33.89.


Be Aware

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


F5 E10 Related Terms

Thank you for viewing the detailed overview of F5's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


F5 Business Description

Traded in Other Exchanges
Address
801 5th Avenue, Seattle, WA, USA, 98104
F5 is a market leader in the application delivery controller market. The company sells products for security, application performance, and automation. Its three customer verticals are enterprises, service providers, and government entities. Revenue is evenly split between its services business and products business with revenue trending toward products due to software adoption. The Seattle-based firm was incorporated in 1996, and went public in 1999.

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