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Charter Communications Inc  (NAS:CHTR) E10: $-1.56 (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.

Charter Communications Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.190. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-1.56 for the trailing ten years ended in Sep. 2017.

As of today, Charter Communications Inc's current stock price is $334.27. Charter Communications Inc's E10 for the quarter that ended in Sep. 2017 was $-1.56. Charter Communications Inc's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Charter Communications Inc was 20.71. The lowest was -18.90. And the median was 4.04.


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.

Charter Communications 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 -5.81 -5.98 -4.17 -4.03 -2.06

Charter Communications 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 -2.26 -2.06 -1.88 -1.72 -1.56

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, Charter Communications 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)
=0.19/246.819*246.819
=0.190

Current CPI (Sep. 2017) = 246.819.

Charter Communications Inc Quarterly Data

per share eps CPI Adj_EPS
200712 -1.161 210.036 -1.364
200803 -1.073 213.528 -1.240
200806 -0.818 218.815 -0.923
200809 -0.951 218.783 -1.073
200812 -4.413 210.228 -5.181
200903 -0.597 212.709 -0.693
200906 -0.332 215.693 -0.380
200909 -3.019 215.969 -3.450
200912 0.000 215.949 0.000
201003 0.232 217.631 0.263
201006 -0.796 217.965 -0.901
201009 -0.929 218.439 -1.050
201012 -0.829 219.179 -0.934
201103 -1.073 223.467 -1.185
201106 -1.084 225.722 -1.185
201109 -0.874 226.889 -0.951
201112 -0.719 225.672 -0.786
201203 -1.051 229.392 -1.131
201206 -0.929 229.478 -0.999
201209 -0.962 231.407 -1.026
201212 -0.442 229.601 -0.475
201303 -0.464 232.773 -0.492
201306 -1.062 233.504 -1.123
201309 -0.752 234.149 -0.793
201312 0.442 233.049 0.468
201403 -0.387 236.293 -0.404
201406 -0.464 238.343 -0.481
201409 -0.542 238.031 -0.562
201412 -0.487 234.812 -0.512
201503 -0.807 236.119 -0.844
201506 -1.210 238.638 -1.251
201509 0.530 237.945 0.550
201512 -1.200 236.525 -1.252
201603 -1.860 238.132 -1.928
201606 15.170 241.018 15.535
201609 0.690 241.428 0.705
201612 0.530 241.432 0.542
201703 0.570 243.801 0.577
201706 0.520 244.955 0.524
201709 0.190 246.819 0.190

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.

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

Shiller PE Ratio=Share Price/E10
=334.27/-1.56
=

* 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 Charter Communications Inc was 20.71. The lowest was -18.90. And the median was 4.04.


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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