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Entergy Corp  (NYSE:ETR) E10: $4.67 (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.

Entergy Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $2.210. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.67 for the trailing ten years ended in Sep. 2017.

As of today, Entergy Corp's current stock price is $85.51. Entergy Corp's E10 for the quarter that ended in Sep. 2017 was $4.67. Entergy Corp's Shiller PE Ratio of today is 18.31.

During the past 13 years, the highest Shiller PE Ratio of Entergy Corp was 31.91. The lowest was 10.19. And the median was 13.80.


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.

Entergy Corp 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 5.97 5.97 6.00 5.45 4.59

Entergy Corp 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 5.73 4.59 4.56 4.68 4.67

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, Entergy Corp'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)
=2.21/246.819*246.819
=2.210

Current CPI (Sep. 2017) = 246.819.

Entergy Corp Quarterly Data

per share eps CPI Adj_EPS
200712 0.970 210.036 1.140
200803 1.560 213.528 1.803
200806 1.370 218.815 1.545
200809 2.410 218.783 2.719
200812 0.870 210.228 1.021
200903 1.200 212.709 1.392
200906 1.140 215.693 1.305
200909 2.320 215.969 2.651
200912 1.640 215.949 1.874
201003 1.120 217.631 1.270
201006 1.650 217.965 1.868
201009 2.620 218.439 2.960
201012 1.280 219.179 1.441
201103 1.380 223.467 1.524
201106 1.760 225.722 1.924
201109 3.530 226.889 3.840
201112 0.880 225.672 0.962
201203 -0.860 229.392 -0.925
201206 2.060 229.478 2.216
201209 1.890 231.407 2.016
201212 1.660 229.601 1.784
201303 0.900 232.773 0.954
201306 0.920 233.504 0.972
201309 1.340 234.149 1.413
201312 0.820 233.049 0.868
201403 2.240 236.293 2.340
201406 1.050 238.343 1.087
201409 1.270 238.031 1.317
201412 0.660 234.812 0.694
201503 1.650 236.119 1.725
201506 0.830 238.638 0.858
201509 -4.040 237.945 -4.191
201512 0.550 236.525 0.574
201603 1.280 238.132 1.327
201606 3.160 241.018 3.236
201609 2.160 241.428 2.208
201612 -9.890 241.432 -10.111
201703 0.460 243.801 0.466
201706 2.270 244.955 2.287
201709 2.210 246.819 2.210

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.

Entergy Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=85.51/4.67
=18.31

* 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 Entergy Corp was 31.91. The lowest was 10.19. And the median was 13.80.


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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