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Quality Systems Inc  (NAS:QSII) E10: $0.70 (As of Sep. 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.

Quality Systems Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.130. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.70 for the trailing ten years ended in Sep. 2017.

As of today, Quality Systems Inc's current stock price is $14.53. Quality Systems Inc's E10 for the quarter that ended in Sep. 2017 was $0.70. Quality Systems Inc's Shiller PE Ratio of today is 20.76.

During the past 13 years, the highest Shiller PE Ratio of Quality Systems Inc was 129.82. The lowest was 15.18. And the median was 41.91.


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.

Quality Systems Inc Annual Data

Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.76 0.77 0.77 0.74 0.71

Quality Systems Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 0.72 0.71 0.71 0.71 0.70

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, Quality Systems Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=0.13/246.819*246.819
=0.130

Current CPI (Sep. 2017) = 246.819.

Quality Systems Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.200 210.036 0.235
200803 0.200 213.528 0.231
200806 0.200 218.815 0.226
200809 0.185 218.783 0.209
200812 0.230 210.228 0.270
200903 0.195 212.709 0.226
200906 0.180 215.693 0.206
200909 0.205 215.969 0.234
200912 0.230 215.949 0.263
201003 0.225 217.631 0.255
201006 0.210 217.965 0.238
201009 0.230 218.439 0.260
201012 0.300 219.179 0.338
201103 0.320 223.467 0.353
201106 0.320 225.722 0.350
201109 0.350 226.889 0.381
201112 0.360 225.672 0.394
201203 0.250 229.392 0.269
201206 0.260 229.478 0.280
201209 0.260 231.407 0.277
201212 0.260 229.601 0.279
201303 -0.070 232.773 -0.074
201306 0.220 233.504 0.233
201309 0.170 234.149 0.179
201312 -0.210 233.049 -0.222
201403 0.080 236.293 0.084
201406 0.080 238.343 0.083
201409 0.080 238.031 0.083
201412 0.110 234.812 0.116
201503 0.170 236.119 0.178
201506 0.100 238.638 0.103
201509 0.140 237.945 0.145
201512 0.120 236.525 0.125
201603 -0.270 238.132 -0.280
201606 -0.010 241.018 -0.010
201609 0.060 241.428 0.061
201612 0.170 241.432 0.174
201703 0.070 243.801 0.071
201706 0.060 244.955 0.060
201709 0.130 246.819 0.130

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.

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

Shiller PE Ratio=Share Price/E10
=14.53/0.70
=20.76

* 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 Quality Systems Inc was 129.82. The lowest was 15.18. And the median was 41.91.


Be Aware

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


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