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Citigroup Inc  (NYSE:C) E10: $-6.40 (As of Sep. 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.

Citigroup Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.420. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-6.40 for the trailing ten years ended in Sep. 2017.

As of today, Citigroup Inc's current stock price is $72.57. Citigroup Inc's E10 for the quarter that ended in Sep. 2017 was $-6.40. Citigroup Inc's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Citigroup Inc was 48.32. The lowest was 0.00. And the median was 3.97.


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.

Citigroup 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 13.74 10.08 6.26 1.14 -3.49

Citigroup Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 -2.37 -3.49 -4.58 -5.96 -6.40

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, Citigroup Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=1.42/246.819*246.819
=1.420

Current CPI (Sep. 2017) = 246.819.

Citigroup Inc Quarterly Data

per share eps CPI Adj_EPS
200712 -20.100 210.036 -23.620
200803 -10.300 213.528 -11.906
200806 -5.500 218.815 -6.204
200809 -6.100 218.783 -6.882
200812 -34.600 210.228 -40.622
200903 -1.800 212.709 -2.089
200906 4.900 215.693 5.607
200909 -2.700 215.969 -3.086
200912 -6.100 215.949 -6.972
201003 1.500 217.631 1.701
201006 0.900 217.965 1.019
201009 0.720 218.439 0.814
201012 0.430 219.179 0.484
201103 0.990 223.467 1.093
201106 1.090 225.722 1.192
201109 1.230 226.889 1.338
201112 0.310 225.672 0.339
201203 0.950 229.392 1.022
201206 0.950 229.478 1.022
201209 0.150 231.407 0.160
201212 0.380 229.601 0.408
201303 1.230 232.773 1.304
201306 1.340 233.504 1.416
201309 1.000 234.149 1.054
201312 0.770 233.049 0.815
201403 1.230 236.293 1.285
201406 0.030 238.343 0.031
201409 0.880 238.031 0.912
201412 0.060 234.812 0.063
201503 1.510 236.119 1.578
201506 1.510 238.638 1.562
201509 1.350 237.945 1.400
201512 1.020 236.525 1.064
201603 1.100 238.132 1.140
201606 1.240 241.018 1.270
201609 1.240 241.428 1.268
201612 1.140 241.432 1.165
201703 1.350 243.801 1.367
201706 1.280 244.955 1.290
201709 1.420 246.819 1.420

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.

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

Shiller PE Ratio=Share Price/E10
=72.57/-6.40
=

* 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 Citigroup Inc was 48.32. The lowest was 0.00. And the median was 3.97.


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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