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Neusoft (SHSE:600718) E10 : ¥0.43 (As of Sep. 2024)


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What is Neusoft E10?

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.

Neusoft's adjusted earnings per share data for the three months ended in Sep. 2024 was ¥0.050. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ¥0.43 for the trailing ten years ended in Sep. 2024.

During the past 12 months, Neusoft's average E10 Growth Rate was -4.40% per year. During the past 3 years, the average E10 Growth Rate was -2.90% per year. 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.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Neusoft was 17.70% per year. The lowest was -6.20% per year. And the median was 8.20% per year.

As of today (2024-12-14), Neusoft's current stock price is ¥10.69. Neusoft's E10 for the quarter that ended in Sep. 2024 was ¥0.43. Neusoft's Shiller PE Ratio of today is 24.86.

During the past 13 years, the highest Shiller PE Ratio of Neusoft was 100.71. The lowest was 16.53. And the median was 23.33.


Neusoft E10 Historical Data

The historical data trend for Neusoft'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.

Neusoft E10 Chart

Neusoft Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 0.47 0.54 0.47 0.43

Neusoft Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
E10 Get a 7-Day Free Trial 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 0.45 0.43 0.43 0.43 0.43

Competitive Comparison of Neusoft's E10

For the Software - Application subindustry, Neusoft'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.


Neusoft's Shiller PE Ratio Distribution in the Software Industry

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

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



Neusoft 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, Neusoft's adjusted earnings per share data for the three months ended in Sep. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=0.05/115.7848*115.7848
=0.050

Current CPI (Sep. 2024) = 115.7848.

Neusoft Quarterly Data

per share eps CPI Adj_EPS
201412 0.040 99.000 0.047
201503 0.020 99.900 0.023
201506 0.050 99.500 0.058
201509 0.060 100.500 0.069
201512 0.180 100.600 0.207
201603 0.020 102.200 0.023
201606 0.060 101.400 0.069
201609 1.590 102.400 1.798
201612 -0.160 102.600 -0.181
201703 0.020 103.200 0.022
201706 0.080 103.100 0.090
201709 0.030 104.100 0.033
201712 0.730 104.500 0.809
201803 0.020 105.300 0.022
201806 0.070 104.900 0.077
201809 0.010 106.600 0.011
201812 -0.010 106.500 -0.011
201903 0.003 107.700 0.003
201906 0.017 107.700 0.018
201909 0.010 109.800 0.011
201912 0.000 111.200 0.000
202003 -0.050 112.300 -0.052
202006 0.100 110.400 0.105
202009 0.010 111.700 0.010
202012 0.050 111.500 0.052
202103 -0.030 112.662 -0.031
202106 0.090 111.769 0.093
202109 0.020 112.215 0.021
202112 0.890 113.108 0.911
202203 -0.030 114.335 -0.030
202206 0.100 114.558 0.101
202209 0.040 115.339 0.040
202212 -0.400 115.116 -0.402
202303 0.004 115.116 0.004
202306 0.076 114.558 0.077
202309 0.030 115.339 0.030
202312 -0.050 114.781 -0.050
202403 0.004 115.227 0.004
202406 0.076 114.781 0.077
202409 0.050 115.785 0.050

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


Neusoft  (SHSE:600718) 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.

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

Shiller PE Ratio=Share Price/E10
=10.69/0.43
=24.86

* 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 Neusoft was 100.71. The lowest was 16.53. And the median was 23.33.


Be Aware

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


Neusoft E10 Related Terms

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


Neusoft Business Description

Traded in Other Exchanges
N/A
Address
No. 2 Xinxiu Street, Dongda Software Park, Hunnan New District, Shenyang, Liaoning, CHN, 110179
Neusoft Corp provides information technology solutions and services. The company focuses on software technology and provides industry solutions and product engineering solutions, related software products and platforms, and services. It serves the following industries - telecom, energy, finance, government, manufacturing, trade logistics, healthcare, education, transportation, mobile internet, media, and environmental protection. Neusoft offers services like - application development and maintenance, ERP implementation and consulting, testing, performance engineering, software localization and globalization, IT infrastructure, BPO, IT education and training.
Executives
Wang Yong Feng Directors, senior managers
Xu Hong Li senior management
Song Qing Jun Director
Chen Hong Yin senior management
Diao Ai Li Supervisors
Liu Ji Ren Director
Li Jun senior management
Gai Long Jia senior management
Wang Nan senior management
Chen Xi Min Directors, senior managers
Zhang Xiao Ou senior management
Wang Jing Xi senior management
Yang Wei Supervisors
Lu Chao Xia senior management
Jian Guo Dong senior management

Neusoft Headlines

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