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Broadcom E10

: $9.50 (As of Jul. 2022)
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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.

Broadcom's adjusted earnings per share data for the three months ended in Jul. 2022 was $7.150. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $9.50 for the trailing ten years ended in Jul. 2022.

As of today (2022-10-06), Broadcom's current stock price is $479.50. Broadcom's E10 for the quarter that ended in Jul. 2022 was $9.50. Broadcom's Shiller PE Ratio of today is 50.47.

During the past 13 years, the highest Shiller PE Ratio of Broadcom was 198.86. The lowest was 36.68. And the median was 63.33.


Broadcom E10 Historical Data

The historical data trend for Broadcom'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.

Broadcom Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.42 4.42 5.17 5.66 7.28

Broadcom Quarterly Data
Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22
E10 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 Premium Member Only Premium Member Only Premium Member Only 6.82 7.28 7.90 8.64 9.50

Competitive Comparison

For the Semiconductors subindustry, Broadcom's E10, along with its competitors' market caps and E10 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.

   

Broadcom E10 Distribution

For the Semiconductors industry and Technology sector, Broadcom's E10 distribution charts can be found below:

* The bar in red indicates where Broadcom's E10 falls into.



Broadcom 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, Broadcom's adjusted earnings per share data for the three months ended in Jul. 2022 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jul. 2022 (Change)*Current CPI (Jul. 2022)
=7.15/125.0020*125.0020
=7.150

Current CPI (Jul. 2022) = 125.0020.

Broadcom Quarterly Data

per share eps CPI Adj_EPS
201210 0.642 97.595 0.822
201301 0.501 97.158 0.645
201304 0.451 98.107 0.575
201307 0.561 98.557 0.712
201310 0.682 98.536 0.865
201401 0.531 98.692 0.673
201404 0.612 100.023 0.765
201407 -0.652 100.520 -0.811
201410 0.501 100.176 0.625
201501 1.263 98.604 1.601
201504 1.213 99.824 1.519
201507 0.842 100.691 1.045
201510 1.494 100.346 1.861
201601 1.303 99.957 1.629
201604 -3.028 100.947 -3.750
201607 -0.752 101.524 -0.926
201610 -1.594 101.988 -1.954
201701 0.571 102.456 0.697
201704 1.053 103.167 1.276
201707 1.143 103.278 1.383
201710 1.504 104.070 1.807
201801 14.657 104.578 17.520
201804 8.351 105.708 9.875
201807 2.717 106.324 3.194
201810 2.647 106.695 3.101
201901 1.123 106.200 1.322
201904 1.644 107.818 1.906
201907 1.714 108.250 1.979
201910 1.975 108.577 2.274
202001 0.740 108.841 0.850
202004 1.170 108.173 1.352
202007 1.450 109.318 1.658
202010 2.930 109.861 3.334
202101 3.050 110.364 3.455
202104 3.300 112.673 3.661
202107 4.200 115.183 4.558
202110 4.450 116.696 4.767
202201 5.590 118.619 5.891
202204 5.930 121.978 6.077
202207 7.150 125.002 7.150

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


Broadcom  (NAS:AVGO) 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.

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

Shiller PE Ratio=Share Price/E10
=479.50/9.5
=50.47

* 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 Broadcom was 198.86. The lowest was 36.68. And the median was 63.33.


Be Aware

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


Broadcom E10 Related Terms

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


Broadcom Business Description

Broadcom logo
Address
1320 Ridder Park Drive, San Jose, CA, USA, 95131-2313
Broadcom--the combined entity of Broadcom and Avago--boasts a highly diverse product portfolio across an array of end markets. Avago focused primarily on radio frequency filters and amplifiers used in high-end smartphones, such as the Apple iPhone and Samsung Galaxy devices, in addition to an assortment of solutions for wired infrastructure, enterprise storage, and industrial end markets. Legacy Broadcom targeted networking semiconductors, such as switch and physical layer chips, broadband products (such as television set-top box processors), and connectivity chips that handle standards such as Wi-Fi and Bluetooth. The company has acquired Brocade, CA Technologies, and Symantec's enterprise security business to bolster its offerings in software.
Executives
Fernandez Raul J director 11600 SUNRISE VALLEY DR RESTON VA 20191
Lien Justine director 1320 RIDDER PARK DRIVE SAN JOSE CA 95131
Bryant Diane M director 2200 MISSION COLLEGE BLVD SANTA CLARA CA 95054
You Harry L. director EMC CORPORATION 176 SOUTH STREET HOPKINTON MA 01748
Krause Thomas H. officer: Chief Financial Officer 1320 RIDDER PARK SAN JOSE CA 95131
Ingram Bryan officer: SVP & GM, Wireless Semicon Div C/O AVAGO TECHNOLOGIES LIMITED 350 WEST TRIMBLE ROAD, BLDG. 90 SAN JOSE CA 95131
Spears Kirsten M. officer: Principal Accounting Officer 1320 RIDDER PARK SAN JOSE CA 95131
Kawwas Charlie B officer: SVP & Chief Sales Officer C/O AVAGO TECHNOLOGIES U.S. INC. 350 WEST TRIMBLE ROAD SAN JOSE CA 95131
Brazeal Mark David officer: Chief Legal Officer 1320 RIDDER PARK DRIVE SAN JOSE CA 95131
Tan Hock E director, officer: President and CEO BROADCOM INC. 1320 RIDDER PARK DRIVE SAN JOSE CA 95131
Silver Lake Partners V De (aiv), L.p. director C/O SILVER LAKE 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Silver Lake Technology Associates V, L.p. director C/O SILVER LAKE 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Slta V (gp), L.l.c. director C/O SILVER LAKE 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Silver Lake Technology Investors V, L.p. director C/O SILVER LAKE 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Silver Lake Group, L.l.c. director 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025

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