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Magic Software Enterprises (XTAE:MGIC) E10 : ₪2.03 (As of Mar. 2024)


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What is Magic Software Enterprises 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.

Magic Software Enterprises's adjusted earnings per share data for the three months ended in Mar. 2024 was ₪0.670. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₪2.03 for the trailing ten years ended in Mar. 2024.

During the past 12 months, Magic Software Enterprises's average E10 Growth Rate was 6.80% per year. During the past 3 years, the average E10 Growth Rate was 9.50% per year. During the past 5 years, the average E10 Growth Rate was 7.70% per year. During the past 10 years, the average E10 Growth Rate was 7.80% 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 Magic Software Enterprises was 26.90% per year. The lowest was -135.10% per year. And the median was 9.00% per year.

As of today (2024-06-15), Magic Software Enterprises's current stock price is ₪39.68. Magic Software Enterprises's E10 for the quarter that ended in Mar. 2024 was ₪2.03. Magic Software Enterprises's Shiller PE Ratio of today is 19.55.

During the past 13 years, the highest Shiller PE Ratio of Magic Software Enterprises was 46.94. The lowest was 16.10. And the median was 23.73.


Magic Software Enterprises E10 Historical Data

The historical data trend for Magic Software Enterprises'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.

Magic Software Enterprises E10 Chart

Magic Software Enterprises 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 1.44 1.51 1.63 1.84 1.98

Magic Software Enterprises Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 1.90 1.97 1.98 1.98 2.03

Competitive Comparison of Magic Software Enterprises's E10

For the Information Technology Services subindustry, Magic Software Enterprises'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.


Magic Software Enterprises's Shiller PE Ratio Distribution in the Software Industry

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

* The bar in red indicates where Magic Software Enterprises's Shiller PE Ratio falls into.



Magic Software Enterprises 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, Magic Software Enterprises's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.67/131.7762*131.7762
=0.670

Current CPI (Mar. 2024) = 131.7762.

Magic Software Enterprises Quarterly Data

per share eps CPI Adj_EPS
201406 0.335 100.560 0.439
201409 0.372 100.428 0.488
201412 0.223 99.070 0.297
201503 0.372 99.621 0.492
201506 0.335 100.684 0.438
201509 0.335 100.392 0.440
201512 0.298 99.792 0.394
201603 0.298 100.470 0.391
201606 0.335 101.688 0.434
201609 0.335 101.861 0.433
201612 0.011 101.863 0.014
201703 0.372 102.862 0.477
201706 0.298 103.349 0.380
201709 0.335 104.136 0.424
201712 0.335 104.011 0.424
201803 0.372 105.290 0.466
201806 0.447 106.317 0.554
201809 0.372 106.507 0.460
201812 0.223 105.998 0.277
201903 0.410 107.251 0.504
201906 0.298 108.070 0.363
201909 0.372 108.329 0.453
201912 -0.112 108.420 -0.136
202003 0.447 108.902 0.541
202006 0.447 108.767 0.542
202009 0.521 109.815 0.625
202012 0.410 109.897 0.492
202103 0.559 111.754 0.659
202106 0.596 114.631 0.685
202109 0.559 115.734 0.636
202112 0.186 117.630 0.208
202203 0.745 121.301 0.809
202206 0.708 125.017 0.746
202209 0.894 125.227 0.941
202212 0.857 125.222 0.902
202303 0.782 127.348 0.809
202306 0.857 128.729 0.877
202309 0.559 129.860 0.567
202312 0.633 129.419 0.645
202403 0.670 131.776 0.670

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


Magic Software Enterprises  (XTAE:MGIC) 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.

Magic Software Enterprises's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=39.68/2.03
=19.55

* 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 Magic Software Enterprises was 46.94. The lowest was 16.10. And the median was 23.73.


Be Aware

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


Magic Software Enterprises E10 Related Terms

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


Magic Software Enterprises (XTAE:MGIC) Business Description

Traded in Other Exchanges
Address
Yahadut Canada 1 Street, Or Yehuda, Or Yehuda, ISR, 6037501
Magic Software Enterprises Ltd is a software development company. The company's operating segment includes Software Services and IT Professional Services. It generates maximum revenue from the IT Professional Services segment. IT Professional Services segment offers advanced and flexible IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services. Geographically, it derives a majority of revenue from the United States and also has a presence in Israel; Europe; Japan, and Other countries.

Magic Software Enterprises (XTAE:MGIC) Headlines

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