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Saksoft (NSE:SAKSOFT) E10 : ₹4.31 (As of Sep. 2024)


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What is Saksoft 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.

Saksoft's adjusted earnings per share data for the three months ended in Sep. 2024 was ₹2.060. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₹4.31 for the trailing ten years ended in Sep. 2024.

During the past 12 months, Saksoft's average E10 Growth Rate was 20.70% 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.

As of today (2024-12-11), Saksoft's current stock price is ₹241.68. Saksoft's E10 for the quarter that ended in Sep. 2024 was ₹4.31. Saksoft's Shiller PE Ratio of today is 56.07.

During the past 13 years, the highest Shiller PE Ratio of Saksoft was 85.64. The lowest was 18.39. And the median was 51.53.


Saksoft E10 Historical Data

The historical data trend for Saksoft'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.

Saksoft E10 Chart

Saksoft 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 - - 2.59 3.20 3.89

Saksoft 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 3.57 3.73 3.89 4.09 4.31

Competitive Comparison of Saksoft's E10

For the Information Technology Services subindustry, Saksoft'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.


Saksoft's Shiller PE Ratio Distribution in the Software Industry

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

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



Saksoft 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, Saksoft'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)
=2.06/157.8822*157.8822
=2.060

Current CPI (Sep. 2024) = 157.8822.

Saksoft Quarterly Data

per share eps CPI Adj_EPS
201412 0.340 96.780 0.555
201503 0.387 97.163 0.629
201506 0.324 99.841 0.512
201509 0.327 101.753 0.507
201512 0.377 102.901 0.578
201603 0.374 102.518 0.576
201606 0.350 105.961 0.522
201609 0.329 105.961 0.490
201612 0.340 105.196 0.510
201703 0.282 105.196 0.423
201706 0.286 107.109 0.422
201709 0.353 109.021 0.511
201712 0.562 109.404 0.811
201803 0.526 109.786 0.756
201806 0.528 111.317 0.749
201809 0.713 115.142 0.978
201812 0.748 115.142 1.026
201903 0.785 118.202 1.049
201906 0.726 120.880 0.948
201909 0.728 123.175 0.933
201912 0.728 126.235 0.911
202003 0.752 124.705 0.952
202006 0.773 127.000 0.961
202009 0.814 130.118 0.988
202012 0.890 130.889 1.074
202103 0.926 131.771 1.109
202106 1.319 134.084 1.553
202109 0.960 135.847 1.116
202112 1.096 138.161 1.252
202203 1.288 138.822 1.465
202206 1.312 142.347 1.455
202209 1.424 144.661 1.554
202212 1.456 145.763 1.577
202303 1.832 146.865 1.969
202306 1.832 150.280 1.925
202309 1.950 151.492 2.032
202312 1.792 152.924 1.850
202403 1.776 153.035 1.832
202406 1.928 155.789 1.954
202409 2.060 157.882 2.060

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


Saksoft  (NSE:SAKSOFT) 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.

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

Shiller PE Ratio=Share Price/E10
=241.68/4.31
=56.07

* 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 Saksoft was 85.64. The lowest was 18.39. And the median was 51.53.


Be Aware

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


Saksoft E10 Related Terms

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


Saksoft Business Description

Traded in Other Exchanges
Address
Global Infocity Park, Block A, 2nd Floor, No. 40, Dr. MGR Salai, Perungudi, Kadanchavadi, Chennai, TN, IND, 600 096
Saksoft Ltd is an information technology company. It provides software solutions including consulting, design, development, re-engineering, systems integration, implementation, and testing. Its operations relate to providing information technology services. Saksoft is geographically present in the the United States of America, Europe and Asia Pacific and Others. It derives majority of its revenue from USA.

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