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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 $27.54. E*TRADE Financial Corp's E10 for the quarter that ended in Mar. 2016 was $-4.83. 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 122.86. The lowest was 0.00. And the median was 74.04.

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. 2016 was $0.530. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $-4.83 for the trailing ten years ended in Mar. 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
=27.54/-4.83
=

* 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 Dec15 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=0.53/238.132*238.132
=0.530

Current CPI (Mar. 2016) = 238.132.

E*TRADE Financial Corp Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 0.1980.3300.2400.2900.1390.1400.990-0.5300.3020.530
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525238.132
Adj_EPS 0.2020.3330.2400.2900.1410.1410.988-0.5300.3040.530
201106201109201112201203201206201209201212201303201306201309
per share eps 0.1600.240-0.0220.2200.140-0.100-0.6520.120-0.1900.160
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS 0.1690.252-0.0230.2280.145-0.103-0.6760.123-0.1940.163
200812200903200906200909200912201003201006201009201012201103
per share eps -5.020-4.100-2.160-6.740-0.358-0.2500.1200.030-0.1090.160
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS -5.686-4.590-2.385-7.432-0.395-0.2740.1310.033-0.1180.170
200606200609200612200703200706200709200712200803200806200809
per share eps 3.6003.5004.0523.9003.700-1.400-39.836-2.000-1.900-0.900
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 4.2254.1084.7824.5234.229-1.599-45.165-2.230-2.068-0.980

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 own currency.

E*TRADE Financial Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 81.710.000.000.000.000.000.000.000.000.00

E*TRADE Financial Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 0.000.000.000.000.000.000.000.000.000.00
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