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Quality Systems Inc  (NAS:QSII) E10: $0.71 (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.

Quality Systems Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.060. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.71 for the trailing ten years ended in Jun. 2017.

As of today, Quality Systems Inc's current stock price is $15.62. Quality Systems Inc's E10 for the quarter that ended in Jun. 2017 was $0.71. Quality Systems Inc's Shiller PE Ratio of today is 22.00.

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 43.84.


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 0.75 0.77 0.77 0.74 0.71

Quality Systems 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 0.73 0.72 0.71 0.71 0.71

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 Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=0.06/244.955*244.955
=0.060

Current CPI (Jun. 2017) = 244.955.

Quality Systems Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.175 208.490 0.206
200712 0.200 210.036 0.233
200803 0.200 213.528 0.229
200806 0.200 218.815 0.224
200809 0.185 218.783 0.207
200812 0.230 210.228 0.268
200903 0.195 212.709 0.225
200906 0.180 215.693 0.204
200909 0.205 215.969 0.233
200912 0.230 215.949 0.261
201003 0.225 217.631 0.253
201006 0.210 217.965 0.236
201009 0.230 218.439 0.258
201012 0.300 219.179 0.335
201103 0.320 223.467 0.351
201106 0.320 225.722 0.347
201109 0.350 226.889 0.378
201112 0.360 225.672 0.391
201203 0.250 229.392 0.267
201206 0.260 229.478 0.278
201209 0.260 231.407 0.275
201212 0.260 229.601 0.277
201303 -0.070 232.773 -0.074
201306 0.220 233.504 0.231
201309 0.170 234.149 0.178
201312 -0.210 233.049 -0.221
201403 0.080 236.293 0.083
201406 0.080 238.343 0.082
201409 0.080 238.031 0.082
201412 0.110 234.812 0.115
201503 0.170 236.119 0.176
201506 0.100 238.638 0.103
201509 0.140 237.945 0.144
201512 0.120 236.525 0.124
201603 -0.270 238.132 -0.278
201606 -0.010 241.018 -0.010
201609 0.060 241.428 0.061
201612 0.170 241.432 0.172
201703 0.070 243.801 0.070
201706 0.060 244.955 0.060

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
=15.62/0.71
=22.00

* 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 Quality Systems Inc was 129.82. The lowest was 15.18. And the median was 43.84.


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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