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HP (XTER:7HP) E10 : €3.12 (As of Jan. 2025)


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What is HP 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.

HP's adjusted earnings per share data for the three months ended in Jan. 2025 was €0.570. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €3.12 for the trailing ten years ended in Jan. 2025.

During the past 12 months, HP's average E10 Growth Rate was 0.60% per year. During the past 3 years, the average E10 Growth Rate was 20.70% per year. During the past 5 years, the average E10 Growth Rate was 17.10% per year. During the past 10 years, the average E10 Growth Rate was 4.50% 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 HP was 26.30% per year. The lowest was -6.50% per year. And the median was 4.00% per year.

As of today (2025-03-02), HP's current stock price is €32.36. HP's E10 for the quarter that ended in Jan. 2025 was €3.12. HP's Shiller PE Ratio of today is 10.37.

During the past 13 years, the highest Shiller PE Ratio of HP was 23.25. The lowest was 4.46. And the median was 10.30.


HP E10 Historical Data

The historical data trend for HP'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.

HP E10 Chart

HP Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.35 1.58 3.16 2.97 2.94

HP Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 2.96 2.99 2.94 2.94 3.12

Competitive Comparison of HP's E10

For the Computer Hardware subindustry, HP'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.


HP's Shiller PE Ratio Distribution in the Hardware Industry

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

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



HP 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, HP's adjusted earnings per share data for the three months ended in Jan. 2025 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jan. 2025 (Change)*Current CPI (Jan. 2025)
=0.57/134.0288*134.0288
=0.570

Current CPI (Jan. 2025) = 134.0288.

HP Quarterly Data

per share eps CPI Adj_EPS
201504 0.508 99.824 0.682
201507 0.427 100.691 0.568
201510 0.650 100.346 0.868
201601 0.304 99.957 0.408
201604 0.317 100.947 0.421
201607 0.407 101.524 0.537
201610 0.254 101.988 0.334
201701 0.338 102.456 0.442
201704 0.308 103.167 0.400
201707 0.355 103.278 0.461
201710 0.332 104.070 0.428
201801 0.951 104.578 1.219
201804 0.522 105.708 0.662
201807 0.462 106.324 0.582
201810 0.792 106.695 0.995
201901 0.447 106.200 0.564
201904 0.454 107.818 0.564
201907 0.696 108.250 0.862
201910 0.235 108.577 0.290
202001 0.414 108.841 0.510
202004 0.488 108.173 0.605
202007 0.452 109.318 0.554
202010 0.417 109.861 0.509
202101 0.681 110.364 0.827
202104 0.819 112.673 0.974
202107 0.778 115.183 0.905
202110 2.336 116.696 2.683
202201 0.875 118.619 0.989
202204 0.870 121.978 0.956
202207 1.062 125.002 1.139
202210 -0.002 125.734 -0.002
202301 0.436 126.223 0.463
202304 0.967 127.992 1.013
202307 0.687 128.974 0.714
202310 0.919 129.810 0.949
202401 0.569 130.124 0.586
202404 0.569 132.289 0.576
202407 0.599 132.708 0.605
202410 0.854 133.182 0.859
202501 0.570 134.029 0.570

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


HP  (XTER:7HP) 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.

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

Shiller PE Ratio=Share Price/E10
=32.36/3.12
=10.37

* 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 HP was 23.25. The lowest was 4.46. And the median was 10.30.


Be Aware

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


HP E10 Related Terms

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


HP Business Description

Address
1501 Page Mill Road, Palo Alto, CA, USA, 94304
HP (formerly Hewlett-Packard) is a behemoth in the PC and printing markets. It has focused on these markets since it exited IT infrastructure in 2015 with the split from Hewlett Packard Enterprise. HP focuses on the commercial market, but maintains sales of consumer devices and printers. The firm has a broad and global customer base, with only one third of sales coming from the US. HP completely outsources manufacturing and relies heavily on channel partners for its sales and marketing.

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