Switch to:
Qualcomm Inc  (NAS:QCOM) E10: $3.06 (As of Jun. 2017)

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.

Qualcomm Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.580. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.06 for the trailing ten years ended in Jun. 2017.

As of today, Qualcomm Inc's current stock price is $52.02. Qualcomm Inc's E10 for the quarter that ended in Jun. 2017 was $3.06. Qualcomm Inc's Shiller PE Ratio of today is 17.00.

During the past 13 years, the highest Shiller PE Ratio of Qualcomm Inc was 81.81. The lowest was 15.78. And the median was 33.68.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Qualcomm Inc Annual Data

Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.86 2.21 2.59 2.76 3.00

Qualcomm Inc Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 2.93 3.00 3.00 3.03 3.06

Competitive Comparison
* 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.


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.

For example, Qualcomm Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=0.58/244.955*244.955
=0.580

Current CPI (Jun. 2017) = 244.955.

Qualcomm Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.670 208.490 0.787
200712 0.460 210.036 0.536
200803 0.470 213.528 0.539
200806 0.450 218.815 0.504
200809 0.520 218.783 0.582
200812 0.200 210.228 0.233
200903 -0.180 212.709 -0.207
200906 0.440 215.693 0.500
200909 0.480 215.969 0.544
200912 0.500 215.949 0.567
201003 0.460 217.631 0.518
201006 0.470 217.965 0.528
201009 0.530 218.439 0.594
201012 0.710 219.179 0.793
201103 0.590 223.467 0.647
201106 0.610 225.722 0.662
201109 0.620 226.889 0.669
201112 0.810 225.672 0.879
201203 1.280 229.392 1.367
201206 0.690 229.478 0.737
201209 0.730 231.407 0.773
201212 1.090 229.601 1.163
201303 1.060 232.773 1.115
201306 0.900 233.504 0.944
201309 0.870 234.149 0.910
201312 1.090 233.049 1.146
201403 1.140 236.293 1.182
201406 1.310 238.343 1.346
201409 1.120 238.031 1.153
201412 1.170 234.812 1.221
201503 0.630 236.119 0.654
201506 0.730 238.638 0.749
201509 0.690 237.945 0.710
201512 0.990 236.525 1.025
201603 0.780 238.132 0.802
201606 0.970 241.018 0.986
201609 1.070 241.428 1.086
201612 0.460 241.432 0.467
201703 0.500 243.801 0.502
201706 0.580 244.955 0.580

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

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

Shiller PE Ratio=Share Price/E10
=52.02/3.06
=17.00

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

During the past 13 years, the highest Shiller P/E Ratio of Qualcomm Inc was 81.81. The lowest was 15.78. And the median was 33.68.


Be Aware

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


Related Terms

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)

GF Chat

{{numOfNotice}}
FEEDBACK