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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 $26.97. 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 .

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 59.42.

ETFC's Shiller P/E Ratiois ranked higher than
51% of the 490 Companies
in the Global Capital Markets industry.

( Industry Median: 45.10 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 $0.285. 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
=26.97/-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*233.808
=0.285

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 233.808.

E*Trade Financial Corp Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps -0.100-0.6510.120-0.1900.1600.1980.3300.2400.2900.140
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS -0.101-0.6630.121-0.1900.1600.1990.3270.2350.2850.139
201003201006201009201012201103201106201109201112201203201206
per share eps -0.2500.1200.030-0.1090.1600.1600.240-0.0220.2200.140
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS -0.2690.1290.032-0.1160.1670.1660.247-0.0230.2240.143
200903200906200909200912
per share eps -4.100-2.160-6.740-0.358
CPI 212.709215.693215.969215.949
Adj_EPS -4.507-2.341-7.297-0.388

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 92.2948.1751.1269.351.521.300.570.000.000.00

E*Trade Financial Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 0.610.000.000.000.000.000.000.000.000.00
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