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Energy Transfer Partners LP  (NYSE:ETP) E10: $1.15 (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.

Energy Transfer Partners LP's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.330. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.15 for the trailing ten years ended in Sep. 2017.

As of today, Energy Transfer Partners LP's current stock price is $16.75. Energy Transfer Partners LP's E10 for the quarter that ended in Sep. 2017 was $1.15. Energy Transfer Partners LP's Shiller PE Ratio of today is 14.57.

During the past 13 years, the highest Shiller PE Ratio of Energy Transfer Partners LP was 44.73. The lowest was 10.44. And the median was 20.17.


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.

Energy Transfer Partners LP Annual Data

Aug07 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 2.02 1.76 1.75 1.51 1.21

Energy Transfer 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 1.33 1.21 1.21 1.16 1.15

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, Energy Transfer 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)
=0.33/246.819*246.819
=0.330

Current CPI (Sep. 2017) = 246.819.

Energy Transfer Partners LP Quarterly Data

per share eps CPI Adj_EPS
200711 0.547 210.177 0.642
200803 0.893 213.528 1.032
200806 0.400 218.815 0.451
200809 0.627 218.783 0.707
200812 0.280 210.228 0.329
200903 0.913 212.709 1.059
200906 0.253 215.693 0.290
200909 -0.067 215.969 -0.077
200912 0.620 215.949 0.709
201003 0.493 217.631 0.559
201006 -0.173 217.965 -0.196
201009 0.033 218.439 0.037
201012 0.440 219.179 0.495
201103 0.473 223.467 0.522
201106 0.127 225.722 0.139
201109 -0.127 226.889 -0.138
201112 0.280 225.672 0.306
201203 2.900 229.392 3.120
201206 0.000 229.478 0.000
201209 -0.220 231.407 -0.235
201212 0.347 229.601 0.373
201303 0.420 232.773 0.445
201306 0.353 233.504 0.373
201309 0.367 234.149 0.387
201312 -1.207 233.049 -1.278
201403 0.507 236.293 0.530
201406 0.613 238.343 0.635
201409 0.293 238.031 0.304
201412 -0.227 234.812 -0.239
201503 -0.113 236.119 -0.118
201506 0.447 238.638 0.462
201509 0.067 237.945 0.069
201512 -0.527 236.525 -0.550
201603 0.120 238.132 0.124
201606 0.060 241.018 0.061
201609 -0.330 241.428 -0.337
201612 -1.013 241.432 -1.036
201703 0.947 243.801 0.959
201706 -0.040 244.955 -0.040
201709 0.330 246.819 0.330

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.

Energy Transfer Partners LP's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=16.75/1.15
=14.57

* 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 Energy Transfer Partners LP was 44.73. The lowest was 10.44. And the median was 20.17.


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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