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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 $21.69. E*Trade Financial Corp's E10 for the quarter that ended in Mar. 2014 was $-3.81. 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: 4983.33
Current: 0

0
4983.33

During the past 13 years, E*Trade Financial Corp's highest Shiller P/E Ratio was 4983.33. The lowest was 0.00. And the median was 60.51.

ETFC's Shiller P/E Ratiois ranked higher than
51% of the 438 Companies
in the Global Capital Markets industry.

( Industry Median: 9999.00 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 Mar. 2014 was $0.333. 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 $-3.81 for the trailing six years ended in Mar. 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
=21.69/-3.81
=

* 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 Mar. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=0.33/236.293*238.786
=0.333

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

Current CPI = 238.786.

E*Trade Financial Corp Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps -0.0220.2200.140-0.100-0.6510.120-0.1900.1600.1970.330
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS -0.0230.2290.146-0.103-0.6770.123-0.1940.1630.2020.333
200906200909200912201003201006201009201012201103201106201109
per share eps -2.160-6.740-0.358-0.2500.1200.030-0.1090.1600.1600.240
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS -2.391-7.452-0.396-0.2740.1310.033-0.1190.1710.1690.253
200806200809200812200903
per share eps -1.900-0.900-5.020-4.100
CPI 218.815218.783210.228212.709
Adj_EPS -2.073-0.982-5.702-4.603

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 4,688.2892.0547.9754.0788.511.521.300.570.000.00

E*Trade Financial Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 0.570.780.570.610.000.000.000.000.000.00
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