>
Switch to:

IHS Markit E10

: $1.13 (As of Aug. 2021)
View and export this data going back to 2005. Start your Free Trial

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.

IHS Markit's adjusted earnings per share data for the three months ended in Aug. 2021 was $0.400. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.13 for the trailing ten years ended in Aug. 2021.

As of today (2021-11-28), IHS Markit's current stock price is $127.32. IHS Markit's E10 for the quarter that ended in Aug. 2021 was $1.13. IHS Markit's Shiller PE Ratio of today is 112.67.

During the past 13 years, the highest Shiller PE Ratio of IHS Markit was 115.68. The lowest was 8.55. And the median was 62.61.


IHS Markit E10 Historical Data

The historical data trend for IHS Markit'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.

IHS Markit Annual Data
Trend Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.66 0.73 0.83 0.89 1.04

IHS Markit Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
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 1.02 1.04 1.06 1.10 1.13

Competitive Comparison

For the Consulting Services subindustry, IHS Markit'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.

   

IHS Markit E10 Distribution

For the Business Services industry and Industrials sector, IHS Markit's E10 distribution charts can be found below:

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



IHS Markit 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, IHS Markit's adjusted earnings per share data for the three months ended in Aug. 2021 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2021 (Change)*Current CPI (Aug. 2021)
=0.4/112.1000*112.1000
=0.400

Current CPI (Aug. 2021) = 112.1000.

IHS Markit Quarterly Data

per share eps CPI Adj_EPS
201111 0.096 94.700 0.114
201202 0.098 95.200 0.115
201205 0.186 95.900 0.217
201208 0.186 96.100 0.217
201211 0.194 97.000 0.224
201302 0.104 97.500 0.120
201305 0.183 98.200 0.209
201308 0.098 98.400 0.112
201311 0.169 98.800 0.192
201402 0.132 99.100 0.149
201405 0.228 99.600 0.257
201408 0.191 99.900 0.214
201411 0.245 99.900 0.275
201502 0.160 99.500 0.180
201505 0.208 100.100 0.233
201508 0.240 100.300 0.268
201511 0.371 100.300 0.415
201602 0.190 100.100 0.213
201605 0.210 100.800 0.234
201608 -0.090 101.200 -0.100
201611 0.210 101.800 0.231
201702 0.160 102.400 0.175
201705 0.240 103.500 0.260
201708 0.350 104.000 0.377
201711 0.260 104.700 0.278
201802 0.590 104.900 0.630
201805 0.280 105.900 0.296
201808 0.260 106.500 0.274
201811 0.200 106.900 0.210
201902 0.274 106.800 0.288
201905 0.370 107.900 0.384
201908 0.100 108.300 0.104
201911 0.500 108.500 0.517
202002 1.200 108.600 1.239
202005 0.180 108.600 0.186
202008 0.410 108.800 0.422
202011 0.380 109.100 0.390
202102 0.370 109.400 0.379
202105 0.400 111.000 0.404
202108 0.400 112.100 0.400

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


IHS Markit  (NYSE:INFO) 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.

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

Shiller PE Ratio=Share Price/E10
=127.32/1.13
=112.67

* 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 IHS Markit was 115.68. The lowest was 8.55. And the median was 62.61.


Be Aware

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


IHS Markit E10 Related Terms

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


IHS Markit Business Description

IHS Markit logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.

IHS Markit Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)