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 Apr. 2023 was $0.780. 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 Apr. 2023.
As of today (2023-06-03), Cisco Systems's current stock price is $56.65. Cisco Systems's E10 for the quarter that ended in Apr. 2023 was $2.87. Cisco Systems's Shiller PE Ratio of today is 19.74.
During the past 13 years, the highestShiller PE Ratio of Cisco Systems was 35.03. The lowest was 14.01. And the median was 20.36.
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
Jul13
Jul14
Jul15
Jul16
Jul17
Jul18
Jul19
Jul20
Jul21
Jul22
E10
1.59
1.78
1.85
1.69
2.90
Cisco Systems Quarterly Data
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
E10
2.59
2.90
2.93
2.74
2.87
Competitive Comparison
For the Communication Equipment subindustry, Cisco Systems's E10, along with its competitors' market caps and E10 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 E10 Distribution
For the Hardware industry and Technology sector, Cisco Systems's E10 distribution charts can be found below:
* The bar in red indicates where Cisco Systems's E10 falls in comparison to its industry or sector. The grey bar indicates the E10's extreme value range as defined by GuruFocus.
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 Apr. 2023 was:
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
* 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 14.01. And the median was 20.36.
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 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.
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