Magic Software Enterprises (FRA:MGK) Shiller PE Ratio : 18.78 (As of Jun. 10, 2024)

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What is Magic Software Enterprises Shiller PE Ratio?

As of today (2024-06-10), Magic Software Enterprises's current share price is €9.20. Magic Software Enterprises's E10 for the quarter that ended in Mar. 2024 was €0.49. Magic Software Enterprises's Shiller PE Ratio for today is 18.78.

The historical rank and industry rank for Magic Software Enterprises's Shiller PE Ratio or its related term are showing as below:

FRA:MGK' s Shiller PE Ratio Range Over the Past 10 Years
Min: 15.86 Med: 23.48 Max: 46.38
Current: 18.73

During the past years, Magic Software Enterprises's highest Shiller PE Ratio was 46.38. The lowest was 15.86. And the median was 23.48.

FRA:MGK's Shiller PE Ratio is ranked better than
73.71% of 928 companies
in the Software industry
Industry Median: 29.85 vs FRA:MGK: 18.73

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio 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 €0.166. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €0.49 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation

Magic Software Enterprises Shiller PE Ratio Historical Data

The historical data trend for Magic Software Enterprises's Shiller PE Ratio 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 Shiller PE Ratio Chart

Magic Software Enterprises Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Shiller PE Ratio

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23.12

33.23

40.18

30.10

17.59

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
Shiller PE Ratio	Get a 7-Day Free Trial															24.55	24.43	21.53	17.59	21.04

Competitive Comparison of Magic Software Enterprises's Shiller PE Ratio

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 Shiller PE Ratio Calculation

For Shiller PE Ratio, 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 PE Ratio is also called PE10.

The Shiller PE Ratio 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 PE Ratio for today is calculated as

Shiller PE Ratio	=	Share Price	/	E10
	=	9.20	/	0.49
	=	18.78

Magic Software Enterprises's E10 for the quarter that ended in Mar. 2024 is calculated as:

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)
	=	0.166	/	131.7762	*	131.7762
	=	0.166

Current CPI (Mar. 2024) = 131.7762.

Magic Software Enterprises Quarterly Data

	Earnings per Share (Diluted)	CPI	Adj_EPS
201406	0.066	100.560	0.086
201409	0.078	100.428	0.102
201412	0.049	99.070	0.065
201503	0.092	99.621	0.122
201506	0.080	100.684	0.105
201509	0.080	100.392	0.105
201512	0.073	99.792	0.096
201603	0.072	100.470	0.094
201606	0.080	101.688	0.104
201609	0.080	101.861	0.103
201612	0.003	101.863	0.004
201703	0.093	102.862	0.119
201706	0.071	103.349	0.091
201709	0.076	104.136	0.096
201712	0.076	104.011	0.096
201803	0.081	105.290	0.101
201806	0.103	106.317	0.128
201809	0.086	106.507	0.106
201812	0.053	105.998	0.066
201903	0.097	107.251	0.119
201906	0.071	108.070	0.087
201909	0.091	108.329	0.111
201912	-0.027	108.420	-0.033
202003	0.109	108.902	0.132
202006	0.107	108.767	0.130
202009	0.119	109.815	0.143
202012	0.090	109.897	0.108
202103	0.126	111.754	0.149
202106	0.133	114.631	0.153
202109	0.128	115.734	0.146
202112	0.044	117.630	0.049
202203	0.182	121.301	0.198
202206	0.180	125.017	0.190
202209	0.242	125.227	0.255
202212	0.217	125.222	0.228
202303	0.196	127.348	0.203
202306	0.212	128.729	0.217
202309	0.141	129.860	0.143
202312	0.156	129.419	0.159
202403	0.166	131.776	0.166

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

Magic Software Enterprises (FRA:MGK) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.

Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.

Magic Software Enterprises Shiller PE Ratio Related Terms

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Magic Software Enterprises (FRA:MGK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Magic Software Enterprises Ltd (FRA:MGK) » Definitions » Shiller PE Ratio

Comparable Companies

Traded in Other Exchanges

MGIC:USA MGIC:Israel

Address

Yahadut Canada 1 Street, Or Yehuda, Or Yehuda, ISR, 6037501

Website

https://www.magicsoftware.com

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.