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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 $47.55. Level 3 Communications Inc's E10 for the quarter that ended in Jun. 2016 was $-3.08. 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 Jun. 2016 was $0.410. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $-3.08 for the trailing ten years ended in Jun. 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.

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

Shiller P/E Ratio=Share Price/E10
=47.55/-3.08
=

* 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 Dec15 is calculated as:

For example, Level 3 Communications Inc's adjusted earnings per share data for the three months ended in Jun. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2016 (Change)*Current CPI (Jun. 2016)
=0.41/241.038*241.038
=0.410

Current CPI (Jun. 2016) = 241.038.

Level 3 Communications Inc Quarterly Data

201403201406201409201412201503201506201509201512201603201606
per share eps 0.4700.2100.3500.1800.350-0.0400.0039.2700.3400.410
CPI 236.293238.343238.031234.812236.119238.638237.945236.525238.132241.038
Adj_EPS 0.4790.2120.3540.1850.357-0.0400.0039.4470.3440.410
201109201112201203201206201209201212201303201306201309201312
per share eps -1.753-0.336-0.660-0.290-0.760-0.250-0.360-0.110-0.0900.070
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS -1.862-0.359-0.694-0.305-0.792-0.262-0.373-0.114-0.0930.072
200903200906200909200912201003201006201009201012201103201106
per share eps -1.200-1.200-1.500-1.650-2.100-1.500-1.470-0.457-1.829-1.593
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS -1.360-1.341-1.674-1.842-2.326-1.659-1.622-0.503-1.973-1.701
200609200612200703200706200709200712200803200806200809200812
per share eps -1.800-3.000-6.600-1.950-1.650-0.811-1.800-0.300-1.2000.300
CPI 202.900201.800205.352208.352208.490210.036213.528218.815218.783210.228
Adj_EPS -2.138-3.583-7.747-2.256-1.908-0.931-2.032-0.330-1.3220.344

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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ShillerPE 0.000.000.000.000.000.000.000.000.000.00
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