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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 $60.20. Level 3 Communications Inc's E10 for the quarter that ended in Mar. 2017 was $-1.64. 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 Mar. 2017 was $0.260. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $-1.64 for the trailing ten years ended in Mar. 2017.


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
=60.20/-1.64
=

* 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 Mar. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2017 (Change)*Current CPI (Mar. 2017)
=0.26/243.801*243.801
=0.260

Current CPI (Mar. 2017) = 243.801.

Level 3 Communications Inc Quarterly Data

201412201503201506201509201512201603201606201609201612201703
per share eps 0.1800.350-0.0400.0039.2700.3600.4100.3900.6900.260
CPI 234.812236.119238.638237.945236.525238.132241.018241.428241.432243.801
Adj_EPS 0.1870.361-0.0410.0039.5550.3690.4150.3940.6970.260
201206201209201212201303201306201309201312201403201406201409
per share eps -0.290-0.760-0.250-0.360-0.110-0.0900.0700.4700.2100.350
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS -0.308-0.801-0.265-0.377-0.115-0.0940.0730.4850.2150.358
200912201003201006201009201012201103201106201109201112201203
per share eps -1.650-2.100-1.500-1.470-0.457-1.829-1.593-1.753-0.336-0.660
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS -1.863-2.353-1.678-1.641-0.508-1.995-1.721-1.884-0.363-0.701
200706200709200712200803200806200809200812200903200906200909
per share eps -1.950-1.650-0.811-1.800-0.300-1.2000.300-1.200-1.200-1.500
CPI 208.352208.490210.036213.528218.815218.783210.228212.709215.693215.969
Adj_EPS -2.282-1.929-0.941-2.055-0.334-1.3370.348-1.375-1.356-1.693

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

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ShillerPE 0.000.000.000.000.000.000.000.000.000.00
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