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Consolidated Edison Inc  (NYSE:ED) E10: $4.08 (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.

Consolidated Edison Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.480. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.08 for the trailing ten years ended in Sep. 2017.

As of today, Consolidated Edison Inc's current stock price is $79.02. Consolidated Edison Inc's E10 for the quarter that ended in Sep. 2017 was $4.08. Consolidated Edison Inc's Shiller PE Ratio of today is 19.37.

During the past 13 years, the highest Shiller PE Ratio of Consolidated Edison Inc was 21.79. The lowest was 10.01. And the median was 15.41.


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.

Consolidated Edison 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 3.56 3.65 3.77 3.86 3.99

Consolidated Edison 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 4.02 3.99 4.04 4.03 4.08

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, Consolidated Edison 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)
=1.48/246.819*246.819
=1.480

Current CPI (Sep. 2017) = 246.819.

Consolidated Edison Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.750 210.036 0.881
200803 1.110 213.528 1.283
200806 2.020 218.815 2.279
200809 0.660 218.783 0.745
200812 0.580 210.228 0.681
200903 0.660 212.709 0.766
200906 0.550 215.693 0.629
200909 1.220 215.969 1.394
200912 0.720 215.949 0.823
201003 0.800 217.631 0.907
201006 0.640 217.965 0.725
201009 1.230 218.439 1.390
201012 0.790 219.179 0.890
201103 1.060 223.467 1.171
201106 0.560 225.722 0.612
201109 1.300 226.889 1.414
201112 0.650 225.672 0.711
201203 0.940 229.392 1.011
201206 0.730 229.478 0.785
201209 1.490 231.407 1.589
201212 0.700 229.601 0.752
201303 0.650 232.773 0.689
201306 0.590 233.504 0.624
201309 1.580 234.149 1.665
201312 0.790 233.049 0.837
201403 1.230 236.293 1.285
201406 0.720 238.343 0.746
201409 1.480 238.031 1.535
201412 0.270 234.812 0.284
201503 1.260 236.119 1.317
201506 0.740 238.638 0.765
201509 1.450 237.945 1.504
201512 0.590 236.525 0.616
201603 1.050 238.132 1.088
201606 0.770 241.018 0.789
201609 1.620 241.428 1.656
201612 0.660 241.432 0.675
201703 1.270 243.801 1.286
201706 0.570 244.955 0.574
201709 1.480 246.819 1.480

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.

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

Shiller PE Ratio=Share Price/E10
=79.02/4.08
=19.37

* 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 Consolidated Edison Inc was 21.79. The lowest was 10.01. And the median was 15.41.


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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