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Servcorp (ASX:SRV) E10 : A$0.27 (As of Dec. 2023)


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What is Servcorp 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.

Servcorp's adjusted earnings per share data for the fiscal year that ended in Jun. 2023 was A$0.114. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is A$0.27 for the trailing ten years ended in Jun. 2023.

During the past 3 years, the average E10 Growth Rate was 7.10% per year. During the past 5 years, the average E10 Growth Rate was 3.10% per year. During the past 10 years, the average E10 Growth Rate was -0.80% 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 Servcorp was 19.20% per year. The lowest was -10.20% per year. And the median was 4.75% per year.

As of today (2024-06-02), Servcorp's current stock price is A$ 4.11. Servcorp's E10 for the fiscal year that ended in Jun. 2023 was A$0.27. Servcorp's Shiller PE Ratio of today is 15.22.

During the past 13 years, the highest Shiller PE Ratio of Servcorp was 27.93. The lowest was 9.27. And the median was 15.92.


Servcorp E10 Historical Data

The historical data trend for Servcorp'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.

Servcorp E10 Chart

Servcorp Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.21 0.22 0.25 0.27 0.27

Servcorp Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 - 0.27 - 0.27 -

Competitive Comparison of Servcorp's E10

For the Real Estate Services subindustry, Servcorp'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.


Servcorp's Shiller PE Ratio Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Servcorp's Shiller PE Ratio distribution charts can be found below:

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



Servcorp 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, Servcorp's adjusted earnings per share data for the fiscal year that ended in Jun. 2023 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Jun. 2023 (Change)*Current CPI (Jun. 2023)
=0.114/124.1700*124.1700
=0.114

Current CPI (Jun. 2023) = 124.1700.

Servcorp Annual Data

per_share_eps CPI Adj_EPS
201406 0.270 98.352 0.341
201506 0.340 99.838 0.423
201606 0.400 100.859 0.492
201706 0.410 102.809 0.495
201806 0.100 104.945 0.118
201906 0.056 106.617 0.065
202006 0.070 106.246 0.082
202106 0.230 110.332 0.259
202206 0.289 117.112 0.306
202306 0.114 124.170 0.114

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


Servcorp  (ASX:SRV) 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.

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

Shiller PE Ratio=Share Price/E10
=4.11/0.27
=15.22

* 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 Servcorp was 27.93. The lowest was 9.27. And the median was 15.92.


Be Aware

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


Servcorp E10 Related Terms

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


Servcorp (ASX:SRV) Business Description

Traded in Other Exchanges
N/A
Address
19-29 Martin Place, Level 63, MLC Centre, Sydney, NSW, AUS, 2000
Servcorp Ltd is a provider of a wide variety of office-space solutions for businesses, including virtual offices, executive suites, meeting rooms, and other accommodations. The company was founded in Australia but currently operates in numerous large cities across over 21 countries, including New York, Sydney, London, Paris, Tokyo, Hong Kong, and Dubai. Notable locations include co-working space in the One World Trade Center in New York City. The company reports revenue from like-for-like floor income. The company has its operating segments in Australia, New Zealand and South East Asia (ANZ/SEA); United States of America (USA); Europe and Middle East (EME) and North Asia, which derives maximum revenue.