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International Business Machines (NEOE:IBM) E10 : C$1.51 (As of Dec. 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 Dec. 2024 was C$0.494. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is C$1.51 for the trailing ten years ended in Dec. 2024.

During the past 12 months, International Business Machines's average E10 Growth Rate was -6.10% per year. During the past 3 years, the average E10 Growth Rate was -6.80% per year. During the past 5 years, the average E10 Growth Rate was -5.20% per year. During the past 10 years, the average E10 Growth Rate was -1.30% 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 -6.80% per year. And the median was 10.35% per year.

As of today (2025-03-17), International Business Machines's current stock price is C$37.81. International Business Machines's E10 for the quarter that ended in Dec. 2024 was C$1.51. International Business Machines's Shiller PE Ratio of today is 25.04.

During the past 13 years, the highest Shiller PE Ratio of International Business Machines was 26.53. 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 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 1.95 1.78 1.63 1.51

International Business Machines 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 1.63 1.64 1.59 1.58 1.51

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 Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=0.494/133.1571*133.1571
=0.494

Current CPI (Dec. 2024) = 133.1571.

International Business Machines Quarterly Data

per share eps CPI Adj_EPS
201503 0.333 99.621 0.445
201506 0.486 100.684 0.643
201509 0.449 100.392 0.596
201512 0.707 99.792 0.943
201603 0.310 100.470 0.411
201606 0.378 101.688 0.495
201609 0.439 101.861 0.574
201612 0.707 101.863 0.924
201703 0.278 102.862 0.360
201706 0.370 103.349 0.477
201709 0.403 104.136 0.515
201712 -0.164 104.011 -0.210
201803 0.263 105.290 0.333
201806 0.385 106.317 0.482
201809 0.430 106.507 0.538
201812 0.324 105.998 0.407
201903 0.267 107.251 0.331
201906 0.419 108.070 0.516
201909 0.278 108.329 0.342
201912 0.608 108.420 0.747
202003 0.205 108.902 0.251
202006 0.231 108.767 0.283
202009 0.281 109.815 0.341
202012 0.217 109.897 0.263
202103 0.150 111.754 0.179
202106 0.202 114.631 0.235
202109 0.178 115.734 0.205
202112 0.370 117.630 0.419
202203 0.115 121.301 0.126
202206 0.220 125.017 0.234
202209 -0.530 125.227 -0.564
202212 0.452 125.222 0.481
202303 0.155 127.348 0.162
202306 0.257 128.729 0.266
202309 0.280 129.860 0.287
202312 0.535 129.419 0.550
202403 0.262 131.776 0.265
202406 0.302 132.554 0.303
202409 -0.055 133.029 -0.055
202412 0.494 133.157 0.494

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


International Business Machines  (NEOE:IBM) 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
=37.81/1.51
=25.04

* 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 26.53. 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 300,000 people. The company has a robust roster of business partners to service its clients, which include 95% of all Fortune 500 companies. Primary products include its mainframes, Red Hat software, transaction processing software, and IT consulting.