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Qualcomm Inc  (NAS:QCOM) E10: $2.67 (As of Mar. 2019)

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 Inc's adjusted earnings per share data for the three months ended in Mar. 2019 was $0.550. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.67 for the trailing ten years ended in Mar. 2019.

As of today, Qualcomm Inc's current stock price is $66.21. Qualcomm Inc's E10 for the quarter that ended in Mar. 2019 was $2.67. Qualcomm Inc's Shiller PE Ratio of today is 24.80.

During the past 13 years, the highest Shiller PE Ratio of Qualcomm Inc was 65.55. The lowest was 15.78. And the median was 31.42.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Qualcomm Inc Annual Data

Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.59 2.76 2.99 3.01 2.50

Qualcomm Inc Quarterly Data

Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
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 2.54 2.60 2.50 2.54 2.67

Competitive Comparison
* 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.


Qualcomm Inc Distribution

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



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.

For example, Qualcomm Inc's adjusted earnings per share data for the three months ended in Mar. 2019 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2019 (Change)*Current CPI (Mar. 2019)
=0.55/254.202*254.202
=0.550

Current CPI (Mar. 2019) = 254.202.

Qualcomm Inc Quarterly Data

per share eps CPI Adj_EPS
200906 0.440 215.693 0.519
200909 0.480 215.969 0.565
200912 0.500 215.949 0.589
201003 0.460 217.631 0.537
201006 0.470 217.965 0.548
201009 0.530 218.439 0.617
201012 0.710 219.179 0.823
201103 0.590 223.467 0.671
201106 0.610 225.722 0.687
201109 0.620 226.889 0.695
201112 0.810 225.672 0.912
201203 1.280 229.392 1.418
201206 0.690 229.478 0.764
201209 0.730 231.407 0.802
201212 1.090 229.601 1.207
201303 1.060 232.773 1.158
201306 0.900 233.504 0.980
201309 0.870 234.149 0.945
201312 1.090 233.049 1.189
201403 1.140 236.293 1.226
201406 1.310 238.343 1.397
201409 1.120 238.031 1.196
201412 1.170 234.812 1.267
201503 0.630 236.119 0.678
201506 0.730 238.638 0.778
201509 0.670 237.945 0.716
201512 0.990 236.525 1.064
201603 0.780 238.132 0.833
201606 0.970 241.018 1.023
201609 1.070 241.428 1.127
201612 0.460 241.432 0.484
201703 0.500 243.801 0.521
201706 0.580 244.955 0.602
201709 0.110 246.819 0.113
201712 -4.050 246.524 -4.176
201803 0.220 249.554 0.224
201806 0.820 251.989 0.827
201809 -0.350 252.439 -0.352
201812 0.870 251.233 0.880
201903 0.550 254.202 0.550

Add all the adjusted EPS together and divide 10 will get our 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 Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=66.21/2.67
=24.80

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

During the past 13 years, the highest Shiller P/E Ratio of Qualcomm Inc was 65.55. The lowest was 15.78. And the median was 31.42.


Be Aware

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


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