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Qualcomm (MEX:QCOM) E10 : MXN106.37 (As of Sep. 2024)


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What is Qualcomm 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.

Qualcomm's adjusted earnings per share data for the three months ended in Sep. 2024 was MXN50.998. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is MXN106.37 for the trailing ten years ended in Sep. 2024.

During the past 12 months, Qualcomm's average E10 Growth Rate was 8.10% per year. During the past 3 years, the average E10 Growth Rate was 13.70% per year. During the past 5 years, the average E10 Growth Rate was 15.70% per year. During the past 10 years, the average E10 Growth Rate was 7.70% 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 Qualcomm was 80.00% per year. The lowest was -3.10% per year. And the median was 18.10% per year.

As of today (2024-12-15), Qualcomm's current stock price is MXN3171.00. Qualcomm's E10 for the quarter that ended in Sep. 2024 was MXN106.37. Qualcomm's Shiller PE Ratio of today is 29.81.

During the past 13 years, the highest Shiller PE Ratio of Qualcomm was 51.68. The lowest was 15.78. And the median was 26.00.


Qualcomm E10 Historical Data

The historical data trend for Qualcomm'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.

Qualcomm E10 Chart

Qualcomm 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 67.39 77.09 96.84 88.27 106.37

Qualcomm 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 88.27 87.01 86.94 97.38 106.37

Competitive Comparison of Qualcomm's E10

For the Semiconductors subindustry, Qualcomm'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.


Qualcomm's Shiller PE Ratio Distribution in the Semiconductors Industry

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

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



Qualcomm 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, Qualcomm'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)
=50.998/133.0289*133.0289
=50.998

Current CPI (Sep. 2024) = 133.0289.

Qualcomm Quarterly Data

per share eps CPI Adj_EPS
201412 17.257 99.070 23.172
201503 9.604 99.621 12.825
201506 11.454 100.684 15.134
201509 11.322 100.392 15.003
201512 17.023 99.792 22.693
201603 13.427 100.470 17.778
201606 17.939 101.688 23.468
201609 20.689 101.861 27.020
201612 9.484 101.863 12.386
201703 9.415 102.862 12.176
201706 10.484 103.349 13.495
201709 1.996 104.136 2.550
201712 -79.540 104.011 -101.731
201803 3.997 105.290 5.050
201806 15.916 106.317 19.915
201809 -6.547 106.507 -8.177
201812 17.082 105.998 21.438
201903 10.669 107.251 13.233
201906 33.616 108.070 41.380
201909 8.292 108.329 10.183
201912 15.088 108.420 18.513
202003 9.614 108.902 11.744
202006 17.081 108.767 20.891
202009 56.995 109.815 69.043
202012 42.171 109.897 51.048
202103 31.275 111.754 37.229
202106 35.234 114.631 40.889
202109 50.377 115.734 57.905
202112 61.132 117.630 69.135
202203 51.171 121.301 56.118
202206 66.188 125.017 70.430
202209 50.891 125.227 54.062
202212 38.602 125.222 41.009
202303 27.398 127.348 28.620
202306 27.430 128.729 28.346
202309 22.993 129.860 23.554
202312 41.757 129.419 42.922
202403 34.188 131.776 34.513
202406 34.442 132.554 34.565
202409 50.998 133.029 50.998

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


Qualcomm  (MEX:QCOM) 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.

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

Shiller PE Ratio=Share Price/E10
=3171.00/106.37
=29.81

* 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 Qualcomm was 51.68. The lowest was 15.78. And the median was 26.00.


Be Aware

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


Qualcomm E10 Related Terms

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


Qualcomm Business Description

Address
5775 Morehouse Drive, San Diego, CA, USA, 92121-1714
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G, 4G, and 5G networks. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones, as well as chips into automotive and Internet of Things markets.