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GlaxoSmithKline Pharmaceuticals (NSE:GLAXO) E10 : ₹116.79 (As of Sep. 2024)


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What is GlaxoSmithKline Pharmaceuticals 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.

GlaxoSmithKline Pharmaceuticals's adjusted earnings per share data for the three months ended in Sep. 2024 was ₹14.910. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₹116.79 for the trailing ten years ended in Sep. 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 (2024-12-12), GlaxoSmithKline Pharmaceuticals's current stock price is ₹2346.80. GlaxoSmithKline Pharmaceuticals's E10 for the quarter that ended in Sep. 2024 was ₹116.79. GlaxoSmithKline Pharmaceuticals's Shiller PE Ratio of today is 20.09.

During the past 13 years, the highest Shiller PE Ratio of GlaxoSmithKline Pharmaceuticals was 23.79. The lowest was 19.91. And the median was 21.84.


GlaxoSmithKline Pharmaceuticals E10 Historical Data

The historical data trend for GlaxoSmithKline Pharmaceuticals'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.

GlaxoSmithKline Pharmaceuticals E10 Chart

GlaxoSmithKline Pharmaceuticals Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - -

GlaxoSmithKline Pharmaceuticals 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 - - - - 116.79

Competitive Comparison of GlaxoSmithKline Pharmaceuticals's E10

For the Drug Manufacturers - General subindustry, GlaxoSmithKline Pharmaceuticals'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.


GlaxoSmithKline Pharmaceuticals's Shiller PE Ratio Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, GlaxoSmithKline Pharmaceuticals's Shiller PE Ratio distribution charts can be found below:

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



GlaxoSmithKline Pharmaceuticals 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, GlaxoSmithKline Pharmaceuticals'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)
=14.91/157.8822*157.8822
=14.910

Current CPI (Sep. 2024) = 157.8822.

GlaxoSmithKline Pharmaceuticals Quarterly Data

per share eps CPI Adj_EPS
200412 19.335 43.200 70.664
200512 29.550 45.604 102.303
200612 32.525 48.581 105.701
200712 32.320 51.259 99.548
200812 34.890 56.232 97.960
200912 29.980 64.648 73.217
201012 33.090 70.768 73.823
201112 25.300 75.359 53.005
201212 33.170 83.774 62.513
201312 28.435 91.425 49.105
201603 22.205 102.518 34.197
201703 19.880 105.196 29.837
201706 1.560 107.109 2.299
201803 20.700 109.786 29.768
201806 4.960 111.317 7.035
201809 5.950 115.142 8.159
201812 6.710 115.142 9.201
201903 8.660 118.202 11.567
201906 6.700 120.880 8.751
201909 29.680 123.175 38.043
201912 -39.030 126.235 -48.815
202003 8.150 124.705 10.318
202006 6.540 127.000 8.130
202009 4.510 130.118 5.472
202012 9.240 130.889 11.146
202103 0.840 131.771 1.006
202106 7.150 134.084 8.419
202109 12.060 135.847 14.016
202112 8.880 138.161 10.148
202203 71.960 138.822 81.840
202206 7.040 142.347 7.808
202209 11.420 144.661 12.464
202212 9.710 145.763 10.517
202303 7.880 146.865 8.471
202306 7.810 150.280 8.205
202309 12.840 151.492 13.382
202312 2.700 152.924 2.788
202403 11.480 153.035 11.844
202406 10.760 155.789 10.905
202409 14.910 157.882 14.910

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


GlaxoSmithKline Pharmaceuticals  (NSE:GLAXO) 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.

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

Shiller PE Ratio=Share Price/E10
=2346.80/116.79
=20.09

* 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 GlaxoSmithKline Pharmaceuticals was 23.79. The lowest was 19.91. And the median was 21.84.


Be Aware

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


GlaxoSmithKline Pharmaceuticals E10 Related Terms

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


GlaxoSmithKline Pharmaceuticals Business Description

Traded in Other Exchanges
Address
Dr. Annie Besant Road, GSK House, Worli, Mumbai, MH, IND, 400030
GlaxoSmithKline Pharmaceuticals Ltd is an India-based subsidiary of GlaxoSmithKline plc. GSK India develops and manufactures medicines, vaccines, and consumer products. Its medicines portfolio includes prescription drugs for conditions that include asthma, infectious diseases, mental health, and digestion, as well as nonprescription nutrition and cosmetic products. Its vaccines product line includes treatments for conditions such as influenza, HPV, hepatitis, and measles. Its consumer healthcare products include Horlicks-brand packaged food and beverage powders among other retail products. The company derives majority of its revenue from India.

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