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Ensco PLC  (NYSE:ESV) E10: $1.50 (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.

Ensco PLC's adjusted earnings per share data for the three months ended in Sep. 2017 was $-0.080. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.50 for the trailing ten years ended in Sep. 2017.

As of today, Ensco PLC's current stock price is $5.45. Ensco PLC's E10 for the quarter that ended in Sep. 2017 was $1.50. Ensco PLC's Shiller PE Ratio of today is 3.63.

During the past 13 years, the highest Shiller PE Ratio of Ensco PLC was 35.90. The lowest was 2.50. And the median was 12.25.


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.

Ensco PLC 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 4.36 4.97 3.20 2.32 2.08

Ensco PLC 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 2.24 2.08 1.91 1.71 1.50

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, Ensco PLC'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)
=-0.08/246.819*246.819
=-0.080

Current CPI (Sep. 2017) = 246.819.

Ensco PLC Quarterly Data

per share eps CPI Adj_EPS
200712 1.650 210.036 1.939
200803 1.880 213.528 2.173
200806 2.050 218.815 2.312
200809 1.970 218.783 2.222
200812 2.110 210.228 2.477
200903 1.560 212.709 1.810
200906 1.410 215.693 1.613
200909 1.050 215.969 1.200
200912 1.460 215.949 1.669
201003 1.330 217.631 1.508
201006 0.890 217.965 1.008
201009 0.910 218.439 1.028
201012 0.930 219.179 1.047
201103 0.450 223.467 0.497
201106 0.590 225.722 0.645
201109 0.880 226.889 0.957
201112 1.050 225.672 1.148
201203 1.150 229.392 1.237
201206 1.470 229.478 1.581
201209 1.480 231.407 1.579
201212 0.940 229.601 1.010
201303 1.360 232.773 1.442
201306 1.550 233.504 1.638
201309 1.620 234.149 1.708
201312 1.540 233.049 1.631
201403 1.250 236.293 1.306
201406 -5.075 238.343 -5.255
201409 1.830 238.031 1.898
201412 -14.910 234.812 -15.672
201503 1.380 236.119 1.443
201506 1.110 238.638 1.148
201509 1.240 237.945 1.286
201512 -10.610 236.525 -11.072
201603 0.740 238.132 0.767
201606 2.040 241.018 2.089
201609 0.280 241.428 0.286
201612 0.060 241.432 0.061
201703 -0.090 243.801 -0.091
201706 -0.150 244.955 -0.151
201709 -0.080 246.819 -0.080

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.

Ensco PLC's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=5.45/1.50
=3.63

* 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 Ensco PLC was 35.90. The lowest was 2.50. And the median was 12.25.


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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