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CenterPoint Energy Inc (NYSE:CNP)
Shiller P/E Ratio
12.14 (As of Today)

As of today, CenterPoint Energy Inc's current share price is $17.84. CenterPoint Energy Inc's E10 for the quarter that ended in Jun. 2015 was $1.47. CenterPoint Energy Inc's Shiller P/E Ratio for today is 12.14.

CNP' s 10-Year Shiller P/E Ratio Range
Min: 11.54   Max: 38.87
Current: 12.17

11.54
38.87

During the past 13 years, CenterPoint Energy Inc's highest Shiller P/E Ratio was 38.87. The lowest was 11.54. And the median was 16.04.

CNP's Shiller P/E Ratiois ranked higher than
74% of the 351 Companies
in the Global Utilities - Regulated Gas industry.

( Industry Median: 18.77 vs. CNP: 12.17 )

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.

CenterPoint Energy Inc's adjusted earnings per share data for the three months ended in Jun. 2015 was $0.180. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $1.47 for the trailing six years ended in Jun. 2015.


Definition

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.

CenterPoint Energy Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=17.84/1.47
=12.14

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

CenterPoint Energy Inc's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, CenterPoint Energy Inc's adjusted earnings per share data for the three months ended in Jun. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2015*CPI of Current
=0.18/238.638*238.666
=0.180

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 238.666.

CenterPoint Energy Inc Quarterly Data

201303201306201309201312201403201406201409201412201503201506
per share eps 0.340-0.2300.3500.2620.4300.2500.3300.4050.3000.180
CPI 232.773233.504234.149233.049236.293238.343238.031234.812236.119238.638
Adj_EPS 0.349-0.2350.3570.2680.4340.2500.3310.4120.3030.180
201009201012201103201106201109201112201203201206201209201212
per share eps 0.2900.2900.3500.2802.2700.2710.3400.2900.0200.312
CPI 218.439219.179223.467225.722226.889225.672229.392229.478231.407229.601
Adj_EPS 0.3170.3160.3740.2962.3880.2870.3540.3020.0210.324
200909200912201003201006
per share eps 0.3100.2660.2900.200
CPI 215.969215.949217.631217.965
Adj_EPS 0.3430.2940.3180.219

Add all the adjusted EPS together and divide 6 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E 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 P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E 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, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

CenterPoint Energy Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 2.873.66-8.3525.5538.5013.5812.7812.7716.1016.30

CenterPoint Energy Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ShillerPE 15.8916.2416.4816.1016.2417.4816.9416.3013.9212.97
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