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Shopify (Shopify) E10

: $-0.03 (As of Dec. 2023)
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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.

Shopify's adjusted earnings per share data for the three months ended in Dec. 2023 was $0.510. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.03 for the trailing ten years ended in Dec. 2023.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

As of today (2024-04-18), Shopify's current stock price is $70.655. Shopify's E10 for the quarter that ended in Dec. 2023 was $-0.03. Shopify's Shiller PE Ratio of today is .

During the past 12 years, the highest Shiller PE Ratio of Shopify was 626.09. The lowest was 0.00. And the median was 388.18.


Shopify E10 Historical Data

The historical data trend for Shopify'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.

Shopify Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -0.03

Shopify Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 - - -0.14 -0.08 -0.03

Competitive Comparison

For the Software - Application subindustry, Shopify's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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.


Shopify Shiller PE Ratio Distribution

For the Software industry and Technology sector, Shopify's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Shopify's Shiller PE Ratio falls into.



Shopify 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, Shopify's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.51/125.4675*125.4675
=0.510

Current CPI (Dec. 2023) = 125.4675.

Shopify Quarterly Data

per share eps CPI Adj_EPS
201403 -0.010 98.604 -0.013
201406 -0.006 99.473 -0.008
201409 -0.003 99.394 -0.004
201412 -0.004 98.367 -0.005
201503 -0.007 99.789 -0.009
201506 -0.006 100.500 -0.007
201509 -0.006 100.421 -0.007
201512 -0.008 99.947 -0.010
201603 -0.011 101.054 -0.014
201606 -0.010 102.002 -0.012
201609 -0.011 101.765 -0.014
201612 -0.010 101.449 -0.012
201703 -0.015 102.634 -0.018
201706 -0.015 103.029 -0.018
201709 -0.009 103.345 -0.011
201712 -0.003 103.345 -0.004
201803 -0.016 105.004 -0.019
201806 -0.023 105.557 -0.027
201809 -0.022 105.636 -0.026
201812 -0.001 105.399 -0.001
201903 -0.022 106.979 -0.026
201906 -0.026 107.690 -0.030
201909 -0.064 107.611 -0.075
201912 0.001 107.769 0.001
202003 -0.027 107.927 -0.031
202006 0.029 108.401 0.034
202009 0.154 108.164 0.179
202012 0.099 108.559 0.114
202103 0.994 110.298 1.131
202106 0.690 111.720 0.775
202109 0.900 112.905 1.000
202112 -0.295 113.774 -0.325
202203 -1.170 117.646 -1.248
202206 -0.950 120.806 -0.987
202209 -0.120 120.648 -0.125
202212 -0.490 120.964 -0.508
202303 0.050 122.702 0.051
202306 -1.020 124.203 -1.030
202309 0.550 125.230 0.551
202312 0.510 125.468 0.510

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


Shopify  (NYSE:SHOP) 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.

During the past 12 years, the highest Shiller P/E Ratio of Shopify was 626.09. The lowest was 0.00. And the median was 388.18.


Be Aware

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


Shopify E10 Related Terms

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


Shopify (Shopify) Business Description

Address
151 O'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P2L8
Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.

Shopify (Shopify) Headlines