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Real Touch Finance (BOM:538611) E10 : ₹1.05 (As of Mar. 2024)


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What is Real Touch Finance 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.

Real Touch Finance's adjusted earnings per share data for the three months ended in Mar. 2024 was ₹0.410. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₹1.05 for the trailing ten years ended in Mar. 2024.

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.

As of today (2024-06-09), Real Touch Finance's current stock price is ₹48.40. Real Touch Finance's E10 for the quarter that ended in Mar. 2024 was ₹1.05. Real Touch Finance's Shiller PE Ratio of today is 46.10.

During the past 11 years, the highest Shiller PE Ratio of Real Touch Finance was 50.00. The lowest was 17.98. And the median was 33.97.


Real Touch Finance E10 Historical Data

The historical data trend for Real Touch Finance'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.

Real Touch Finance E10 Chart

Real Touch Finance Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 1.05

Real Touch Finance 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 - 0.90 0.92 0.99 1.05

Competitive Comparison of Real Touch Finance's E10

For the Credit Services subindustry, Real Touch Finance'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.


Real Touch Finance's Shiller PE Ratio Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Real Touch Finance's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Real Touch Finance's Shiller PE Ratio falls into.



Real Touch Finance 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, Real Touch Finance'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)
=0.41/153.0345*153.0345
=0.410

Current CPI (Mar. 2024) = 153.0345.

Real Touch Finance Quarterly Data

per share eps CPI Adj_EPS
201406 -0.191 94.103 -0.311
201409 -0.002 96.780 -0.003
201412 0.323 96.780 0.511
201503 0.256 97.163 0.403
201506 0.250 99.841 0.383
201509 0.177 101.753 0.266
201512 0.009 102.901 0.013
201603 -0.124 102.518 -0.185
201606 0.279 105.961 0.403
201609 0.100 105.961 0.144
201612 0.120 105.196 0.175
201703 -0.160 105.196 -0.233
201706 -0.220 107.109 -0.314
201709 -0.140 109.021 -0.197
201712 0.177 109.404 0.248
201803 -0.140 109.786 -0.195
201806 0.240 111.317 0.330
201809 0.150 115.142 0.199
201812 0.170 115.142 0.226
201903 0.000 118.202 0.000
201906 0.290 120.880 0.367
201909 0.320 123.175 0.398
201912 0.330 126.235 0.400
202003 -0.030 124.705 -0.037
202006 0.280 127.000 0.337
202009 0.300 130.118 0.353
202012 0.330 130.889 0.386
202103 0.220 131.771 0.256
202106 0.350 134.084 0.399
202109 0.370 135.847 0.417
202112 0.360 138.161 0.399
202203 0.070 138.822 0.077
202206 0.320 142.347 0.344
202209 0.860 144.661 0.910
202212 0.830 145.763 0.871
202303 0.380 146.865 0.396
202306 0.720 150.280 0.733
202309 0.270 151.492 0.273
202312 0.670 152.924 0.670
202403 0.410 153.035 0.410

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


Real Touch Finance  (BOM:538611) 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.

Real Touch Finance's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=48.40/1.05
=46.10

* 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 11 years, the highest Shiller P/E Ratio of Real Touch Finance was 50.00. The lowest was 17.98. And the median was 33.97.


Be Aware

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


Real Touch Finance E10 Related Terms

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


Real Touch Finance (BOM:538611) Business Description

Traded in Other Exchanges
N/A
Address
No. 480, Anna Salai, 3rd Floor, Khivraj Complex - I, Nandanam, Chennai, TN, IND, 600035
Real Touch Finance Ltd is an India-based non-banking finance company. It is engaged in the business of making both long-term and short-term investments in quoted as well as unquoted shares. It also offers short-term and long-term Loans. The company operates in India and derives primary revenue from the interest income.

Real Touch Finance (BOM:538611) Headlines

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