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Shopify (MEX:SHOP N) E10 : MXN2.59 (As of Dec. 2024)


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What is Shopify 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.

Shopify's adjusted earnings per share data for the three months ended in Dec. 2024 was MXN20.830. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is MXN2.59 for the trailing ten years ended in Dec. 2024.

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.

As of today (2025-03-17), Shopify's current stock price is MXN1868.30. Shopify's E10 for the quarter that ended in Dec. 2024 was MXN2.59. Shopify's Shiller PE Ratio of today is 721.35.

During the past 13 years, the highest Shiller PE Ratio of Shopify was 5585.00. The lowest was 757.39. And the median was 3668.33.


Shopify E10 Historical Data

The historical data trend for Shopify'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.

Shopify E10 Chart

Shopify Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - -0.51 2.59

Shopify Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -0.51 -0.89 -0.66 0.43 2.59

Competitive Comparison of Shopify's E10

For the Software - Application subindustry, Shopify'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.


Shopify's Shiller PE Ratio Distribution in the Software Industry

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

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



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

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=20.83/127.3637*127.3637
=20.830

Current CPI (Dec. 2024) = 127.3637.

Shopify Quarterly Data

per share eps CPI Adj_EPS
201503 -0.103 99.789 -0.131
201506 -0.094 100.500 -0.119
201509 -0.101 100.421 -0.128
201512 -0.138 99.947 -0.176
201603 -0.189 101.054 -0.238
201606 -0.185 102.002 -0.231
201609 -0.213 101.765 -0.267
201612 -0.206 101.449 -0.259
201703 -0.282 102.634 -0.350
201706 -0.271 103.029 -0.335
201709 -0.163 103.345 -0.201
201712 -0.059 103.345 -0.073
201803 -0.291 105.004 -0.353
201806 -0.452 105.557 -0.545
201809 -0.412 105.636 -0.497
201812 -0.020 105.399 -0.024
201903 -0.427 106.979 -0.508
201906 -0.499 107.690 -0.590
201909 -1.263 107.611 -1.495
201912 0.019 107.769 0.022
202003 -0.633 107.927 -0.747
202006 0.669 108.401 0.786
202009 3.402 108.164 4.006
202012 1.969 108.559 2.310
202103 20.318 110.298 23.462
202106 13.735 111.720 15.658
202109 18.506 112.905 20.876
202112 -6.052 113.774 -6.775
202203 -23.296 117.646 -25.220
202206 -19.112 120.806 -20.149
202209 -2.414 120.648 -2.548
202212 -9.553 120.964 -10.058
202303 0.901 122.702 0.935
202306 -17.487 124.203 -17.932
202309 9.580 125.230 9.743
202312 8.657 125.072 8.816
202403 -3.485 126.258 -3.516
202406 2.382 127.522 2.379
202409 12.602 127.285 12.610
202412 20.830 127.364 20.830

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


Shopify  (MEX:SHOP N) 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.

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

Shiller PE Ratio=Share Price/E10
=1868.30/2.59
=721.35

* 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 Shopify was 5585.00. The lowest was 757.39. And the median was 3668.33.


Be Aware

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


Shopify E10 Related Terms

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


Shopify Business Description

Address
151 O\'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P 2L8
Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.

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