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American Tower Corp  (NYSE:AMT) E10: $1.42 (As of Jun. 2017)

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.

American Tower Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.800. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.42 for the trailing ten years ended in Jun. 2017.

As of today, American Tower Corp's current stock price is $139.07. American Tower Corp's E10 for the quarter that ended in Jun. 2017 was $1.42. American Tower Corp's Shiller PE Ratio of today is 97.94.

During the past 13 years, the highest Shiller PE Ratio of American Tower Corp was 1499.60. The lowest was 82.72. And the median was 109.17.


Historical Data

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

* Premium members only.

American Tower Corp Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.13 0.47 0.81 1.03 1.24

American Tower Corp Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.15 1.20 1.24 1.32 1.42

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today’s price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

For example, American Tower Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=0.8/244.955*244.955
=0.800

Current CPI (Jun. 2017) = 244.955.

American Tower Corp Quarterly Data

per share eps CPI Adj_EPS
200709 0.140 208.490 0.164
200712 -0.020 210.036 -0.023
200803 0.100 213.528 0.115
200806 0.380 218.815 0.425
200809 0.150 218.783 0.168
200812 0.220 210.228 0.256
200903 0.150 212.709 0.173
200906 0.140 215.693 0.159
200909 0.170 215.969 0.193
200912 0.160 215.949 0.181
201003 0.240 217.631 0.270
201006 0.250 217.965 0.281
201009 0.230 218.439 0.258
201012 0.210 219.179 0.235
201103 0.230 223.467 0.252
201106 0.290 225.722 0.315
201109 -0.040 226.889 -0.043
201112 0.510 225.672 0.554
201203 0.560 229.392 0.598
201206 0.120 229.478 0.128
201209 0.580 231.407 0.614
201212 0.340 229.601 0.363
201303 0.430 232.773 0.453
201306 0.250 233.504 0.262
201309 0.450 234.149 0.471
201312 0.250 233.049 0.263
201403 0.510 236.293 0.529
201406 0.580 238.343 0.596
201409 0.500 238.031 0.515
201412 0.420 234.812 0.438
201503 0.450 236.119 0.467
201506 0.300 238.638 0.308
201509 0.180 237.945 0.185
201512 0.490 236.525 0.507
201603 0.580 238.132 0.597
201606 0.370 241.018 0.376
201609 0.550 241.428 0.558
201612 0.470 241.432 0.477
201703 0.670 243.801 0.673
201706 0.800 244.955 0.800

Add all the adjusted EPS together and divide 10 will get our e10.


Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

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.

American Tower Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=139.07/1.42
=97.94

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

During the past 13 years, the highest Shiller P/E Ratio of American Tower Corp was 1499.60. The lowest was 82.72. And the median was 109.17.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


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