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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 $22.90. E*Trade Financial Corp's E10 for the quarter that ended in Sep. 2014 was $-3.23. E*Trade Financial Corp's Shiller P/E Ratio for today is 0.00.

ETFC' s 10-Year Shiller P/E Ratio Range
Min: 4.59   Max: 3737.5
Current: 0

4.59
3737.5

During the past 13 years, E*Trade Financial Corp's highest Shiller P/E Ratio was 3737.50. The lowest was 4.59. And the median was 59.16.

ETFC's Shiller P/E Ratiois ranked higher than
63% of the 482 Companies
in the Global Capital Markets industry.

( Industry Median: 48.97 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 Sep. 2014 was $0.290. 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 $-3.23 for the trailing six years ended in Sep. 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
=22.90/-3.23
=

* 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 Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.29/238.031*238.389
=0.290

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

Current CPI = 238.389.

E*Trade Financial Corp Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.140-0.100-0.6510.120-0.1900.1600.1970.3300.2400.290
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.145-0.103-0.6760.123-0.1940.1630.2020.3330.2400.290
200912201003201006201009201012201103201106201109201112201203
per share eps -0.358-0.2500.1200.030-0.1090.1600.1600.240-0.0220.220
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS -0.395-0.2740.1310.033-0.1190.1710.1690.252-0.0230.229
200812200903200906200909
per share eps -5.020-4.100-2.160-6.740
CPI 210.228212.709215.693215.969
Adj_EPS -5.692-4.595-2.387-7.440

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 3,967.3491.9748.1050.4167.701.521.300.570.000.00

E*Trade Financial Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 0.570.610.000.000.000.000.000.000.000.00
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