GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » FirstService Corp (TSX:FSV) » Definitions » E10

FirstService (TSX:FSV) E10 : C$1.54 (As of Dec. 2024)


View and export this data going back to 1993. Start your Free Trial

What is FirstService 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.

FirstService's adjusted earnings per share data for the three months ended in Dec. 2024 was C$1.012. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is C$1.54 for the trailing ten years ended in Dec. 2024.

During the past 12 months, FirstService's average E10 Growth Rate was 33.90% per year. During the past 3 years, the average E10 Growth Rate was 44.50% 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 FirstService was 44.50% per year. The lowest was 44.50% per year. And the median was 44.50% per year.

As of today (2025-03-17), FirstService's current stock price is C$237.53. FirstService's E10 for the quarter that ended in Dec. 2024 was C$1.54. FirstService's Shiller PE Ratio of today is 154.24.

During the past 13 years, the highest Shiller PE Ratio of FirstService was 10698.00. The lowest was 153.39. And the median was 198.93.


FirstService E10 Historical Data

The historical data trend for FirstService'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.

FirstService E10 Chart

FirstService Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 0.51 0.83 1.15 1.54

FirstService Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 1.15 1.20 1.28 1.42 1.54

Competitive Comparison of FirstService's E10

For the Real Estate Services subindustry, FirstService'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.


FirstService's Shiller PE Ratio Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, FirstService's Shiller PE Ratio distribution charts can be found below:

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



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

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=1.012/127.3637*127.3637
=1.012

Current CPI (Dec. 2024) = 127.3637.

FirstService Quarterly Data

per share eps CPI Adj_EPS
201503 -0.114 99.789 -0.146
201506 0.247 100.500 0.313
201509 0.517 100.421 0.656
201512 0.123 99.947 0.157
201603 -0.066 101.054 -0.083
201606 0.451 102.002 0.563
201609 0.564 101.765 0.706
201612 0.253 101.449 0.318
201703 0.161 102.634 0.200
201706 0.651 103.029 0.805
201709 0.503 103.345 0.620
201712 0.511 103.345 0.630
201803 0.220 105.004 0.267
201806 0.814 105.557 0.982
201809 0.912 105.636 1.100
201812 0.417 105.399 0.504
201903 0.080 106.979 0.095
201906 -9.940 107.690 -11.756
201909 0.662 107.611 0.784
201912 0.171 107.769 0.202
202003 0.181 107.927 0.214
202006 0.867 108.401 1.019
202009 0.992 108.164 1.168
202012 0.640 108.559 0.751
202103 0.628 110.298 0.725
202106 1.014 111.720 1.156
202109 1.305 112.905 1.472
202112 0.896 113.774 1.003
202203 0.405 117.646 0.438
202206 0.999 120.806 1.053
202209 1.027 120.648 1.084
202212 1.168 120.964 1.230
202303 0.493 122.702 0.512
202306 1.342 124.203 1.376
202309 0.988 125.230 1.005
202312 0.188 125.072 0.191
202403 0.190 126.258 0.192
202406 1.069 127.522 1.068
202409 1.815 127.285 1.816
202412 1.012 127.364 1.012

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


FirstService  (TSX:FSV) 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.

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

Shiller PE Ratio=Share Price/E10
=237.53/1.54
=154.24

* 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 FirstService was 10698.00. The lowest was 153.39. And the median was 198.93.


Be Aware

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


FirstService E10 Related Terms

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


FirstService Business Description

Traded in Other Exchanges
Address
1255 Bay Street, Suite 600, Toronto, ON, CAN, M5R 2A9
FirstService Corp operates in two business divisions: FirstService Residential and FirstService Brands. FirstService Residential has service contracts to manage thousands of residential communities, including high-, medium-, and low-rise condominiums and co-operatives. FirstService Brands generates most of the company's revenue and provides property services to residential and commercial customers through the following brands: California Closets; Paul Davis Restoration; CertPro Painters; Pillar to Post; Floor Coverings International; College Pro Painters; and Service America. The company earns the majority of its revenue in the United States, with the remaining revenue generated in Canada.
Executives
D. Scott Patterson Director, Senior Officer
Jeremy Alan Rakusin Senior Officer
Joan Eloise Sproul Director
Erin Joy Wallace Director
Douglas G. Cooke Senior Officer
Alex Nguyen Senior Officer
Yousry Bissada Director
Jay Stewart Hennick Director
Bernard I. Ghert Director
Frederick Reichheld Director
Brendan Calder Director
Steven Grimshaw Director
Michael Natale Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Kevin Joseph Sylvio Roy Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)