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Enterprise Products Partners LP  (NYSE:EPD) E10: $1.17 (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.

Enterprise Products Partners LP's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.280. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.17 for the trailing ten years ended in Sep. 2017.

As of today, Enterprise Products Partners LP's current stock price is $28.66. Enterprise Products Partners LP's E10 for the quarter that ended in Sep. 2017 was $1.17. Enterprise Products Partners LP's Shiller PE Ratio of today is 24.50.

During the past 13 years, the highest Shiller PE Ratio of Enterprise Products Partners LP was 44.16. The lowest was 15.14. And the median was 31.82.


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.

Enterprise Products Partners LP 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 0.72 0.84 0.94 1.02 1.09

Enterprise Products Partners LP 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 1.08 1.09 1.13 1.14 1.17

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, Enterprise Products Partners LP'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)
=0.28/246.819*246.819
=0.280

Current CPI (Sep. 2017) = 246.819.

Enterprise Products Partners LP Quarterly Data

per share eps CPI Adj_EPS
200712 0.150 210.036 0.176
200803 0.255 213.528 0.295
200806 0.260 218.815 0.293
200809 0.190 218.783 0.214
200812 0.215 210.228 0.252
200903 0.205 212.709 0.238
200906 0.160 215.693 0.183
200909 0.180 215.969 0.206
200912 -0.050 215.949 -0.057
201003 0.165 217.631 0.187
201006 0.130 217.965 0.147
201009 0.090 218.439 0.102
201012 0.190 219.179 0.214
201103 0.245 223.467 0.271
201106 0.255 225.722 0.279
201109 0.275 226.889 0.299
201112 0.415 225.672 0.454
201203 0.365 229.392 0.393
201206 0.320 229.478 0.344
201209 0.330 231.407 0.352
201212 0.335 229.601 0.360
201303 0.415 232.773 0.440
201306 0.300 233.504 0.317
201309 0.320 234.149 0.337
201312 0.380 233.049 0.402
201403 0.430 236.293 0.449
201406 0.340 238.343 0.352
201409 0.370 238.031 0.384
201412 0.340 234.812 0.357
201503 0.320 236.119 0.335
201506 0.280 238.638 0.290
201509 0.320 237.945 0.332
201512 0.340 236.525 0.355
201603 0.320 238.132 0.332
201606 0.270 241.018 0.276
201609 0.300 241.428 0.307
201612 0.310 241.432 0.317
201703 0.360 243.801 0.364
201706 0.300 244.955 0.302
201709 0.280 246.819 0.280

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.

Enterprise Products Partners LP's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=28.66/1.17
=24.50

* 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 Enterprise Products Partners LP was 44.16. The lowest was 15.14. And the median was 31.82.


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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