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Level 3 Communications Inc (NYSE:LVLT)
Shiller PE Ratio
(As of Today)

As of today, Level 3 Communications Inc's current share price is $56.06. Level 3 Communications Inc's E10 for the quarter that ended in Dec. 2016 was $-2.42. 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 Dec. 2016 was $0.690. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $-2.42 for the trailing ten years ended in Dec. 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
=56.06/-2.42
=

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Level 3 Communications Inc's E10 for the fiscal year that ended in Dec16 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Dec. 2016 (Change)*Current CPI (Dec. 2016)
=0.69/241.432*241.432
=0.690

Current CPI (Dec. 2016) = 241.432.

Level 3 Communications Inc Quarterly Data

201409201412201503201506201509201512201603201606201609201612
per share eps 0.3500.1800.350-0.0400.0039.2700.3400.4100.3900.690
CPI 238.031234.812236.119238.638237.945236.525238.132241.018241.428241.432
Adj_EPS 0.3550.1850.358-0.0400.0039.4620.3450.4110.3900.690
201203201206201209201212201303201306201309201312201403201406
per share eps -0.660-0.290-0.760-0.250-0.360-0.110-0.0900.0700.4700.210
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS -0.695-0.305-0.793-0.263-0.373-0.114-0.0930.0730.4800.213
200909200912201003201006201009201012201103201106201109201112
per share eps -1.500-1.650-2.100-1.500-1.470-0.457-1.829-1.593-1.753-0.336
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS -1.677-1.845-2.330-1.661-1.625-0.503-1.976-1.704-1.865-0.359
200703200706200709200712200803200806200809200812200903200906
per share eps -6.600-1.950-1.650-0.811-1.800-0.300-1.2000.300-1.200-1.200
CPI 205.352208.352208.490210.036213.528218.815218.783210.228212.709215.693
Adj_EPS -7.760-2.260-1.911-0.932-2.035-0.331-1.3240.345-1.362-1.343

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 local exchange's currency.

Level 3 Communications Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ShillerPE 0.000.000.000.000.000.000.000.000.000.00

Level 3 Communications Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ShillerPE 0.000.000.000.000.000.000.000.000.000.00
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