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International Business Machines (MIL:1IBM) E10 : €9.21 (As of Sep. 2024)


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What is International Business Machines 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.

International Business Machines's adjusted earnings per share data for the three months ended in Sep. 2024 was €-0.324. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €9.21 for the trailing ten years ended in Sep. 2024.

During the past 12 months, International Business Machines's average E10 Growth Rate was -6.00% per year. During the past 3 years, the average E10 Growth Rate was -5.10% per year. During the past 5 years, the average E10 Growth Rate was -3.80% per year. During the past 10 years, the average E10 Growth Rate was 0.30% 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 International Business Machines was 34.30% per year. The lowest was -5.10% per year. And the median was 10.60% per year.

As of today (2024-12-15), International Business Machines's current stock price is €221.45. International Business Machines's E10 for the quarter that ended in Sep. 2024 was €9.21. International Business Machines's Shiller PE Ratio of today is 24.04.

During the past 13 years, the highest Shiller PE Ratio of International Business Machines was 23.16. The lowest was 7.08. And the median was 11.24.


International Business Machines E10 Historical Data

The historical data trend for International Business Machines'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.

International Business Machines E10 Chart

International Business Machines Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 9.49

International Business Machines 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 - 9.49 9.77 9.56 9.21

Competitive Comparison of International Business Machines's E10

For the Information Technology Services subindustry, International Business Machines'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.


International Business Machines's Shiller PE Ratio Distribution in the Software Industry

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

* The bar in red indicates where International Business Machines's Shiller PE Ratio falls into.



International Business Machines 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, International Business Machines'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)
=-0.324/133.0289*133.0289
=-0.324

Current CPI (Sep. 2024) = 133.0289.

International Business Machines Quarterly Data

per share eps CPI Adj_EPS
201412 4.469 99.070 6.001
201503 2.171 99.621 2.899
201506 3.118 100.684 4.120
201509 2.682 100.392 3.554
201512 4.214 99.792 5.617
201603 1.877 100.470 2.485
201606 2.323 101.688 3.039
201609 2.655 101.861 3.467
201612 4.475 101.863 5.844
201703 1.730 102.862 2.237
201706 2.207 103.349 2.841
201709 2.450 104.136 3.130
201712 -0.963 104.011 -1.232
201803 1.468 105.290 1.855
201806 2.234 106.317 2.795
201809 2.520 106.507 3.148
201812 1.890 105.998 2.372
201903 1.575 107.251 1.954
201906 2.487 108.070 3.061
201909 1.698 108.329 2.085
201912 3.699 108.420 4.539
202003 1.186 108.902 1.449
202006 1.350 108.767 1.651
202009 1.605 109.815 1.944
202012 1.241 109.897 1.502
202103 0.890 111.754 1.059
202106 1.220 114.631 1.416
202109 1.063 115.734 1.222
202112 2.274 117.630 2.572
202203 0.735 121.301 0.806
202206 1.447 125.017 1.540
202209 -3.575 125.227 -3.798
202212 2.794 125.222 2.968
202303 0.943 127.348 0.985
202306 1.588 128.729 1.641
202309 1.724 129.860 1.766
202312 3.255 129.419 3.346
202403 1.582 131.776 1.597
202406 1.821 132.554 1.828
202409 -0.324 133.029 -0.324

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


International Business Machines  (MIL:1IBM) 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.

International Business Machines's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=221.45/9.21
=24.04

* 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 International Business Machines was 23.16. The lowest was 7.08. And the median was 11.24.


Be Aware

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


International Business Machines E10 Related Terms

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


International Business Machines Business Description

Address
One New Orchard Road, Armonk, NY, USA, 10504
IBM looks to be a part of every aspect of an enterprise's IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients, which includes 95% of all Fortune 500. While IBM is a B2B company, IBM's outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.

International Business Machines Headlines

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