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

As of today, E*TRADE Financial Corp's current share price is $35.21. E*TRADE Financial Corp's E10 for the quarter that ended in Sep. 2016 was $-5.34. E*TRADE Financial Corp's Shiller P/E Ratio for today is .

During the past 13 years, E*TRADE Financial Corp's highest Shiller P/E Ratio was 90.32. The lowest was 0.00. And the median was 68.11.

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 Sep. 2016 was $0.510. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $-5.34 for the trailing ten years ended in Sep. 2016.


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
=35.21/-5.34
=

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

E*TRADE Financial Corp's E10 for the fiscal year that ended in Dec15 is calculated as:

For example, E*TRADE Financial Corp's adjusted earnings per share data for the three months ended in Sep. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2016 (Change)*Current CPI (Sep. 2016)
=0.51/241.428*241.428
=0.510

Current CPI (Sep. 2016) = 241.428.

E*TRADE Financial Corp Quarterly Data

201406201409201412201503201506201509201512201603201606201609
per share eps 0.2400.2900.1400.1400.990-0.5300.3000.5300.4800.510
CPI 238.343238.031234.812236.119238.638237.945236.525238.132241.018241.428
Adj_EPS 0.2430.2940.1440.1431.002-0.5380.3060.5370.4810.510
201112201203201206201209201212201303201306201309201312201403
per share eps -0.0300.2200.140-0.100-0.6500.120-0.1900.1600.1900.330
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS -0.0320.2320.147-0.104-0.6830.124-0.1960.1650.1970.337
200906200909200912201003201006201009201012201103201106201109
per share eps -2.160-6.7402.880-0.2500.1200.030-0.1100.1600.1600.240
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS -2.418-7.5353.220-0.2770.1330.033-0.1210.1730.1710.255
200612200703200706200709200712200803200806200809200812200903
per share eps 4.1003.9003.700-1.400-40.400-2.000-1.900-0.900-5.200-4.100
CPI 201.800205.352208.352208.490210.036213.528218.815218.783210.228212.709
Adj_EPS 4.9054.5854.287-1.621-46.438-2.261-2.096-0.993-5.972-4.654

Add all the adjusted EPS together and divide 10 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 local exchange's currency.

E*TRADE Financial Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 80.980.000.000.000.000.000.000.000.000.00

E*TRADE Financial Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 0.000.000.000.000.000.000.000.000.000.00
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