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Level 3 Communications Inc (NYSE:LVLT)
Shiller P/E Ratio
0.00 (As of Today)

As of today, Level 3 Communications Inc's current share price is $38.49. Level 3 Communications Inc's E10 for the quarter that ended in Dec. 2013 was $-4.02. Level 3 Communications Inc's Shiller P/E Ratio for today is 0.00.

LVLT' s 10-Year Shiller P/E Ratio Range
Min: 0   Max: 7.88
Current: 0

0
7.88

During the past 13 years, Level 3 Communications Inc's highest Shiller P/E Ratio was 7.88. The lowest was 0.00. And the median was 4.10.

LVLT's Shiller P/E Ratiois ranked lower than
96% of the 482 Companies
in the Global Telecom Services industry.

( Industry Median: 15.99 vs. LVLT: 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.

Level 3 Communications Inc's adjusted earnings per share data for the three months ended in Dec. 2013 was $0.063. 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 $-4.02 for the trailing six years ended in Dec. 2013.


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.

Level 3 Communications Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=38.49/-4.02
=

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Level 3 Communications Inc's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Level 3 Communications Inc's adjusted earnings per share data for the three months ended in Dec. 2013 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2013*CPI of Current
=0.062/233.049*236.511
=0.063

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

Current CPI = 236.511.

Level 3 Communications Inc Quarterly Data

201109201112201203201206201209201212201303201306201309201312
per share eps -1.750-0.795-0.660-0.290-0.760-0.257-0.360-0.110-0.0900.062
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS -1.824-0.833-0.680-0.299-0.777-0.265-0.366-0.111-0.0910.063
200903200906200909200912201003201006201009201012201103201106
per share eps -1.200-1.200-1.500-1.663-2.100-1.500-1.470-0.467-1.830-1.590
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS -1.334-1.316-1.643-1.821-2.282-1.628-1.592-0.504-1.937-1.666
200803200806200809200812
per share eps -1.800-0.300-1.2000.149
CPI 213.528218.815218.783210.228
Adj_EPS -1.994-0.324-1.2970.168

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.

Level 3 Communications Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 4.103.366.383.340.77-2.36-1.65-2.250.000.00

Level 3 Communications Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ShillerPE -2.76-2.25-3.59-3.38-3.580.000.000.000.000.00
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