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

As of today, Level 3 Communications Inc's current share price is $46.43. Level 3 Communications Inc's E10 for the quarter that ended in Sep. 2015 was $-5.26. Level 3 Communications Inc's Shiller P/E Ratio for today is .

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.

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 Sep. 2015 was $0.003. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $-5.26 for the trailing ten years ended in Sep. 2015.


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
=46.43/-5.26
=

* 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 Dec14 is calculated as:

For example, Level 3 Communications Inc's adjusted earnings per share data for the three months ended in Sep. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=0.003/237.945*237.945
=0.003

Current CPI (Sep. 2015) = 237.945.

Level 3 Communications Inc Quarterly Data

201309201312201403201406201409201412201503201506201509201512
per share eps -0.0900.0700.4700.2100.3500.1800.350-0.0400.0039.240
CPI 234.149233.049236.293238.343238.031234.812236.119238.638237.945236.525
Adj_EPS -0.0910.0710.4730.2100.3500.1820.353-0.0400.0039.295
201103201106201109201112201203201206201209201212201303201306
per share eps -1.830-1.590-1.750-0.330-0.660-0.290-0.760-0.250-0.360-0.110
CPI 223.467225.722226.889225.672229.392229.478231.407229.601232.773233.504
Adj_EPS -1.949-1.676-1.835-0.348-0.685-0.301-0.781-0.259-0.368-0.112
200809200812200903200906200909200912201003201006201009201012
per share eps -1.2000.300-1.200-1.200-1.500-1.650-2.100-1.500-1.470-0.457
CPI 218.783210.228212.709215.693215.969215.949217.631217.965218.439219.179
Adj_EPS -1.3050.340-1.342-1.324-1.653-1.818-2.296-1.637-1.601-0.496
200603200606200609200612200703200706200709200712200803200806
per share eps -3.000-3.450-1.800-3.000-6.600-1.950-1.650-0.750-1.800-0.300
CPI 199.800202.900202.900201.800205.352208.352208.490210.036213.528218.815
Adj_EPS -3.573-4.046-2.111-3.537-7.648-2.227-1.883-0.850-2.006-0.326

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.

Level 3 Communications Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 0.000.000.000.000.000.000.000.000.000.00

Level 3 Communications Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ShillerPE 0.000.000.000.000.000.000.000.000.000.00
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