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E*Trade Financial Corp (NAS:ETFC)
Shiller P/E Ratio
0.00 (As of Today)

As of today, E*Trade Financial Corp's current share price is $22.29. E*Trade Financial Corp's E10 for the quarter that ended in Jun. 2014 was $-3.47. E*Trade Financial Corp's Shiller P/E Ratio for today is 0.00.

ETFC' s 10-Year Shiller P/E Ratio Range
Min: 0   Max: 3737.5
Current: 0

0
3737.5

During the past 13 years, E*Trade Financial Corp's highest Shiller P/E Ratio was 3737.50. The lowest was 0.00. And the median was 59.42.

ETFC's Shiller P/E Ratiois ranked lower than
53% of the 439 Companies
in the Global Capital Markets industry.

( Industry Median: 94.31 vs. ETFC: 0.00 )

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.

E*Trade Financial Corp's adjusted earnings per share data for the three months ended in Jun. 2014 was $0.241. 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 $-3.47 for the trailing six years ended in Jun. 2014.


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.

E*Trade Financial Corp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=22.29/-3.47
=

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

E*Trade Financial Corp's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, E*Trade Financial Corp's adjusted earnings per share data for the three months ended in Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=0.24/238.343*239.229
=0.241

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 239.229.

E*Trade Financial Corp Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 0.2200.140-0.100-0.6510.120-0.1900.1600.1970.3300.240
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 0.2290.146-0.103-0.6780.123-0.1950.1630.2020.3340.241
200909200912201003201006201009201012201103201106201109201112
per share eps -6.740-0.358-0.2500.1200.030-0.1090.1600.1600.240-0.022
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS -7.466-0.397-0.2750.1320.033-0.1190.1710.1700.253-0.023
200809200812200903200906
per share eps -0.900-5.020-4.100-2.160
CPI 218.783210.228212.709215.693
Adj_EPS -0.984-5.713-4.611-2.396

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.

E*Trade Financial Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 3,945.3392.3648.2052.2375.141.521.300.570.000.00

E*Trade Financial Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 0.780.570.610.000.000.000.000.000.000.00
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