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Gartner E10

: $3.43 (As of Jun. 2022)
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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.

Gartner's adjusted earnings per share data for the three months ended in Jun. 2022 was $2.530. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.43 for the trailing ten years ended in Jun. 2022.

As of today (2022-09-28), Gartner's current stock price is $278.345. Gartner's E10 for the quarter that ended in Jun. 2022 was $3.43. Gartner's Shiller PE Ratio of today is 81.15.

During the past 13 years, the highest Shiller PE Ratio of Gartner was 126.72. The lowest was 45.49. And the median was 69.64.


Gartner E10 Historical Data

The historical data trend for Gartner'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.

Gartner Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.53 1.57 1.76 1.97 2.88

Gartner Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 2.48 2.64 2.88 3.13 3.43

Competitive Comparison

For the Information Technology Services subindustry, Gartner'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.

   

Gartner E10 Distribution

For the Software industry and Technology sector, Gartner's E10 distribution charts can be found below:

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



Gartner 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, Gartner's adjusted earnings per share data for the three months ended in Jun. 2022 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2022 (Change)*Current CPI (Jun. 2022)
=2.53/125.0168*125.0168
=2.530

Current CPI (Jun. 2022) = 125.0168.

Gartner Quarterly Data

per share eps CPI Adj_EPS
201209 0.330 97.633 0.423
201212 0.610 96.871 0.787
201303 0.380 98.209 0.484
201306 0.490 98.518 0.622
201309 0.400 98.790 0.506
201312 0.650 98.326 0.826
201403 0.400 99.695 0.502
201406 0.580 100.560 0.721
201409 0.380 100.428 0.473
201412 0.660 99.070 0.833
201503 0.320 99.621 0.402
201506 0.610 100.684 0.757
201509 0.360 100.392 0.448
201512 0.780 99.792 0.977
201603 0.540 100.470 0.672
201606 0.620 101.688 0.762
201609 0.360 101.861 0.442
201612 0.790 101.863 0.970
201703 0.430 102.862 0.523
201706 -1.030 103.349 -1.246
201709 -0.530 104.136 -0.636
201712 1.160 104.011 1.394
201803 -0.220 105.290 -0.261
201806 0.500 106.317 0.588
201809 0.130 106.507 0.153
201812 0.920 105.998 1.085
201903 0.230 107.251 0.268
201906 1.130 108.070 1.307
201909 0.460 108.329 0.531
201912 0.750 108.420 0.865
202003 0.830 108.902 0.953
202006 0.610 108.767 0.701
202009 0.190 109.815 0.216
202012 1.330 109.897 1.513
202103 1.840 111.754 2.058
202106 3.130 114.631 3.414
202109 1.760 115.734 1.901
202112 2.500 117.630 2.657
202203 2.080 121.301 2.144
202206 2.530 125.017 2.530

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


Gartner  (NYSE:IT) 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.

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

Shiller PE Ratio=Share Price/E10
=278.345/3.43
=81.15

* 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 Gartner was 126.72. The lowest was 45.49. And the median was 69.64.


Be Aware

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


Gartner E10 Related Terms

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


Gartner Business Description

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Address
56 Top Gallant Road, P.O. Box 10212, Stamford, CT, USA, 06902-7700
Based in Stamford, Conn., Gartner provides independent research and analysis on information technology and other related technology industries. Its research is delivered to clients' desktops in the form of reports, briefings, and updates. Typical clients are chief information officers and other business executives who help plan companies' IT budgets. Gartner also provides consulting services and hosted nearly 80 IT conferences across the globe in 2007.
Executives
Sribar Valentin officer: SVP, Research & Advisory 56 TOP GALLANT ROAD STAMFORD CT 06902
Ferguson Diana Sue director C/O SARA LEE CORP 70 W MADISO ST CHICAGO IL 60602
Herkes Claire officer: EVP, Conferences 56 TOP GALLANT ROAD STAMFORD CT 06902
Jain Akhil officer: SVP, Consulting 56 TOP GALLANT ROAD STAMFORD CT 06902
Genovese Yvonne officer: EVP, Global Product Management 56 TOP GALLANT ROAD STAMFORD CT 06902
Allard Kenneth officer: SVP, New Market Programs 56 TOP GALLANT STAMFORD CT 06902
Kaufman Jules officer: EVP, GC 56 TOP GALLANT ROAD STAMFORD CT 06904
Safian Craig officer: EVP & CFO 56 TOP GALLANT ROAD STAMFORD CT 06904
Dawkins Alwyn officer: EVP, Conferences 56 TOP GALLANT ROAD STAMFORD CT 06902
Harris Michael P officer: EVP, Research & Advisory 56 TOP GALLANT ROAD STAMFORD CT 06896
Beck Joseph P. officer: EVP, Global Technology Sales 56 TOP GALLANT RD. STAMFORD CT 06902
Hensel Scott officer: EVP Consulting C/O GARTNER, INC. 56 TOP GALLANT RD. STAMFORD CT 06902
Serra Eileen director 56 TOP GALLANT RD. STAMFORD CT 06902
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Diliberto Michael Fox officer: SVP, Chief Information Officer 56 TOP GALLANT RD STAMFORD CT 06904

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