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Aarvi Encon (NSE:AARVI) E10 : ₹13.04 (As of Dec. 2023)


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What is Aarvi Encon 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.

Aarvi Encon's adjusted earnings per share data for the fiscal year that ended in Mar. 2023 was ₹9.820. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is ₹13.04 for the trailing ten years ended in Mar. 2023.

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 (2024-05-29), Aarvi Encon's current stock price is ₹ 138.60. Aarvi Encon's E10 for the fiscal year that ended in Mar. 2023 was ₹13.04. Aarvi Encon's Shiller PE Ratio of today is 10.63.

During the past 11 years, the highest Shiller PE Ratio of Aarvi Encon was 10.82. The lowest was 7.38. And the median was 9.66.


Aarvi Encon E10 Historical Data

The historical data trend for Aarvi Encon'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.

Aarvi Encon E10 Chart

Aarvi Encon Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 11.88 13.04

Aarvi Encon Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 - 13.04 - - -

Competitive Comparison of Aarvi Encon's E10

For the Staffing & Employment Services subindustry, Aarvi Encon'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.


Aarvi Encon's Shiller PE Ratio Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Aarvi Encon's Shiller PE Ratio distribution charts can be found below:

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



Aarvi Encon 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, Aarvi Encon's adjusted earnings per share data for the fiscal year that ended in Mar. 2023 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Mar. 2023 (Change)*Current CPI (Mar. 2023)
=9.82/146.8646*146.8646
=9.820

Current CPI (Mar. 2023) = 146.8646.

Aarvi Encon Annual Data

per_share_eps CPI Adj_EPS
201403 3.198 91.425 5.137
201503 4.334 97.163 6.551
201603 1.706 102.518 2.444
201703 49.360 105.196 68.912
201803 6.040 109.786 8.080
201903 5.840 118.202 7.256
202003 4.860 124.705 5.724
202103 7.080 131.771 7.891
202203 8.160 138.822 8.633
202303 9.820 146.865 9.820

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


Aarvi Encon  (NSE:AARVI) 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.

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

Shiller PE Ratio=Share Price/E10
=138.60/13.04
=10.63

* 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 Aarvi Encon was 10.82. The lowest was 7.38. And the median was 9.66.


Be Aware

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


Aarvi Encon E10 Related Terms

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


Aarvi Encon (NSE:AARVI) Business Description

Traded in Other Exchanges
N/A
Address
G.K. Road, Marathon Innova, B1 Wing, 603, Marathon NextGen Complex, Opposite Peninsula Corporate Park, Lower Parel (West), Mumbai, MH, IND, 400013
Aarvi Encon Ltd is a technical manpower outsourcing company providing Staffing solutions to companies in different sectors. Its services include Information Technology Staffing, Manpower Outsourcing, Manpower Deputation, Project Management, Construction Supervision, and Inspection Services, among others. The company caters its services to industries such as Oil and Gas, Engineering, Metals and Minerals, Fertilizer, Telecom, Pipeline, Infrastructure, and others. Geographically, it generates the majority of the revenue from India.

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