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Cisco Systems (XSGO:CSCO) E10

: $2.87 (As of Jan. 2024)
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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.

Cisco Systems's adjusted earnings per share data for the three months ended in Jan. 2024 was $0.650. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.87 for the trailing ten years ended in Jan. 2024.

During the past 12 months, Cisco Systems's average E10 Growth Rate was 8.10% per year. During the past 3 years, the average E10 Growth Rate was 10.40% per year. During the past 5 years, the average E10 Growth Rate was 10.00% per year. During the past 10 years, the average E10 Growth Rate was 6.30% 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 Cisco Systems was 29.60% per year. The lowest was 2.20% per year. And the median was 11.70% per year.

As of today (2024-04-23), Cisco Systems's current stock price is $56.65. Cisco Systems's E10 for the quarter that ended in Jan. 2024 was $2.87. Cisco Systems's Shiller PE Ratio of today is 19.74.

During the past 13 years, the highest Shiller PE Ratio of Cisco Systems was 35.03. The lowest was 15.26. And the median was 20.68.


Cisco Systems E10 Historical Data

The historical data trend for Cisco Systems'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.

Cisco Systems Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.78 1.85 1.69 2.90 2.68

Cisco Systems Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 2.74 2.88 2.68 2.74 2.87

Competitive Comparison

For the Communication Equipment subindustry, Cisco Systems'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.


Cisco Systems Shiller PE Ratio Distribution

For the Hardware industry and Technology sector, Cisco Systems's Shiller PE Ratio distribution charts can be found below:

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



Cisco Systems 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, Cisco Systems's adjusted earnings per share data for the three months ended in Jan. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=0.65/129.4194*129.4194
=0.650

Current CPI (Jan. 2024) = 129.4194.

Cisco Systems Quarterly Data

per share eps CPI Adj_EPS
201404 0.420 100.023 0.543
201407 0.430 100.520 0.554
201410 0.350 100.176 0.452
201501 0.460 98.604 0.604
201504 0.470 99.824 0.609
201507 0.450 100.691 0.578
201510 0.480 100.346 0.619
201601 0.620 99.957 0.803
201604 0.460 100.947 0.590
201607 0.560 101.524 0.714
201610 0.460 101.988 0.584
201701 0.470 102.456 0.594
201704 0.500 103.167 0.627
201707 0.480 103.278 0.601
201710 0.480 104.070 0.597
201801 -1.780 104.578 -2.203
201804 0.560 105.708 0.686
201807 0.810 106.324 0.986
201810 0.770 106.695 0.934
201901 0.630 106.200 0.768
201904 0.690 107.818 0.828
201907 0.510 108.250 0.610
201910 0.680 108.577 0.811
202001 0.680 108.841 0.809
202004 0.650 108.173 0.778
202007 0.620 109.318 0.734
202010 0.510 109.861 0.601
202101 0.600 110.364 0.704
202104 0.680 112.673 0.781
202107 0.710 115.183 0.798
202110 0.700 116.696 0.776
202201 0.710 118.619 0.775
202204 0.730 121.978 0.775
202207 0.680 125.002 0.704
202210 0.650 125.734 0.669
202301 0.670 126.223 0.687
202304 0.780 127.992 0.789
202307 0.970 128.974 0.973
202310 0.890 129.810 0.887
202401 0.650 129.419 0.650

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


Cisco Systems  (XSGO:CSCO) 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.

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

Shiller PE Ratio=Share Price/E10
=56.65/2.87
=19.74

* 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 Cisco Systems was 35.03. The lowest was 15.26. And the median was 20.68.


Be Aware

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


Cisco Systems E10 Related Terms

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


Cisco Systems (XSGO:CSCO) Business Description

Address
170 West Tasman Drive, San Jose, CA, USA, 95134-1706
Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employees 80,000 employees and sells its products globally.