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Chesapeake Energy Corp  (NYSE:CHK) E10: $-3.41 (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.

Chesapeake Energy Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $-0.050. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-3.41 for the trailing ten years ended in Sep. 2017.

As of today, Chesapeake Energy Corp's current stock price is $3.97. Chesapeake Energy Corp's E10 for the quarter that ended in Sep. 2017 was $-3.41. Chesapeake Energy Corp's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Chesapeake Energy Corp was 827.00. The lowest was 0.00. And the median was 24.03.


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.

Chesapeake Energy 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 0.71 0.64 0.63 -1.90 -3.10

Chesapeake Energy Corp 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 -2.92 -3.10 -3.18 -3.28 -3.41

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, Chesapeake Energy Corp'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)
=-0.05/246.819*246.819
=-0.050

Current CPI (Sep. 2017) = 246.819.

Chesapeake Energy Corp Quarterly Data

per share eps CPI Adj_EPS
200712 0.320 210.036 0.376
200803 -0.290 213.528 -0.335
200806 -3.170 218.815 -3.576
200809 5.620 218.783 6.340
200812 -1.940 210.228 -2.278
200903 -9.630 212.709 -11.174
200906 0.390 215.693 0.446
200909 0.300 215.969 0.343
200912 -0.790 215.949 -0.903
201003 1.140 217.631 1.293
201006 0.370 217.965 0.419
201009 0.750 218.439 0.847
201012 0.270 219.179 0.304
201103 -0.320 223.467 -0.353
201106 0.680 225.722 0.744
201109 1.230 226.889 1.338
201112 0.630 225.672 0.689
201203 -0.110 229.392 -0.118
201206 1.290 229.478 1.387
201209 -3.190 231.407 -3.402
201212 0.400 229.601 0.430
201303 0.020 232.773 0.021
201306 0.660 233.504 0.698
201309 0.240 234.149 0.253
201312 -0.230 233.049 -0.244
201403 0.540 236.293 0.564
201406 0.220 238.343 0.228
201409 0.260 238.031 0.270
201412 0.830 234.812 0.872
201503 -5.720 236.119 -5.979
201506 -6.270 238.638 -6.485
201509 -7.080 237.945 -7.344
201512 -3.360 236.525 -3.506
201603 -1.660 238.132 -1.721
201606 -2.510 241.018 -2.570
201609 -1.620 241.428 -1.656
201612 -0.650 241.432 -0.665
201703 0.080 243.801 0.081
201706 0.470 244.955 0.474
201709 -0.050 246.819 -0.050

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.

Chesapeake Energy Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=3.97/-3.41
=

* 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 Chesapeake Energy Corp was 827.00. The lowest was 0.00. And the median was 24.03.


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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