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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 $46.18. Level 3 Communications Inc's E10 for the quarter that ended in Mar. 2014 was $-3.65. 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 higher than
78% of the 901 Companies
in the Global Telecom Services industry.

( Industry Median: 58.94 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 Mar. 2014 was $0.475. 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 $-3.65 for the trailing six years ended in Mar. 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.

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

Shiller P/E Ratio=Share Price/E10
=46.18/-3.65
=

* 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 Mar. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=0.47/236.293*238.786
=0.475

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

Current CPI = 238.786.

Level 3 Communications Inc Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps -0.795-0.660-0.290-0.760-0.257-0.360-0.110-0.0900.0620.470
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS -0.841-0.687-0.302-0.784-0.267-0.369-0.112-0.0920.0640.475
200906200909200912201003201006201009201012201103201106201109
per share eps -1.200-1.500-1.663-2.100-1.500-1.470-0.467-1.830-1.590-1.750
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS -1.328-1.658-1.839-2.304-1.643-1.607-0.509-1.955-1.682-1.842
200806200809200812200903
per share eps -0.300-1.2000.149-1.200
CPI 218.815218.783210.228212.709
Adj_EPS -0.327-1.3100.169-1.347

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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE -2.25-3.59-3.38-3.580.000.000.000.000.000.00
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