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BGC Partners Inc  (NAS:BGCP) E10: $0.25 (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.

BGC Partners Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.070. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.25 for the trailing ten years ended in Jun. 2017.

As of today, BGC Partners Inc's current stock price is $15.87. BGC Partners Inc's E10 for the quarter that ended in Jun. 2017 was $0.25. BGC Partners Inc's Shiller PE Ratio of today is 63.48.

During the past 13 years, the highest Shiller PE Ratio of BGC Partners Inc was 92.00. The lowest was 11.75. And the median was 36.20.


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.

BGC Partners Inc 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 0.28 0.23 0.18 0.22 0.25

BGC Partners Inc 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 0.23 0.25 0.25 0.25 0.25

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, BGC Partners Inc'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)
=0.07/244.955*244.955
=0.070

Current CPI (Jun. 2017) = 244.955.

BGC Partners Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.060 208.490 0.070
200712 -0.060 210.036 -0.070
200803 -0.010 213.528 -0.011
200806 0.160 218.815 0.179
200809 0.080 218.783 0.090
200812 -0.020 210.228 -0.023
200903 0.100 212.709 0.115
200906 0.100 215.693 0.114
200909 0.030 215.969 0.034
200912 0.010 215.949 0.011
201003 -0.050 217.631 -0.056
201006 0.090 217.965 0.101
201009 0.070 218.439 0.078
201012 0.130 219.179 0.145
201103 0.090 223.467 0.099
201106 0.090 225.722 0.098
201109 -0.020 226.889 -0.022
201112 0.020 225.672 0.022
201203 0.060 229.392 0.064
201206 0.010 229.478 0.011
201209 0.000 231.407 0.000
201212 0.090 229.601 0.096
201303 0.040 232.773 0.042
201306 0.180 233.504 0.189
201309 0.110 234.149 0.115
201312 0.010 233.049 0.011
201403 0.040 236.293 0.041
201406 0.030 238.343 0.031
201409 0.030 238.031 0.031
201412 -0.110 234.812 -0.115
201503 0.060 236.119 0.062
201506 0.040 238.638 0.041
201509 0.150 237.945 0.154
201512 0.230 236.525 0.238
201603 0.050 238.132 0.051
201606 0.050 241.018 0.051
201609 0.210 241.428 0.213
201612 0.040 241.432 0.041
201703 0.060 243.801 0.060
201706 0.070 244.955 0.070

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.

BGC Partners Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=15.87/0.25
=63.48

* 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 BGC Partners Inc was 92.00. The lowest was 11.75. And the median was 36.20.


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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