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Fluor Corp  (NYSE:FLR) E10: $3.30 (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.

Fluor Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.670. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.30 for the trailing ten years ended in Sep. 2017.

As of today, Fluor Corp's current stock price is $46.70. Fluor Corp's E10 for the quarter that ended in Sep. 2017 was $3.30. Fluor Corp's Shiller PE Ratio of today is 14.15.

During the past 13 years, the highest Shiller PE Ratio of Fluor Corp was 37.76. The lowest was 11.56. And the median was 21.35.


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.

Fluor 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 2.54 2.87 3.05 3.20 3.29

Fluor 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 3.29 3.29 3.31 3.26 3.30

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, Fluor 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)
=0.67/246.819*246.819
=0.670

Current CPI (Sep. 2017) = 246.819.

Fluor Corp Quarterly Data

per share eps CPI Adj_EPS
200712 1.425 210.036 1.675
200803 0.740 213.528 0.855
200806 1.120 218.815 1.263
200809 1.000 218.783 1.128
200812 1.070 210.228 1.256
200903 1.120 212.709 1.300
200906 0.930 215.693 1.064
200909 0.890 215.969 1.017
200912 0.820 215.949 0.937
201003 0.760 217.631 0.862
201006 0.870 217.965 0.985
201009 -0.300 218.439 -0.339
201012 0.650 219.179 0.732
201103 0.780 223.467 0.862
201106 0.940 225.722 1.028
201109 0.780 226.889 0.849
201112 0.890 225.672 0.973
201203 0.910 229.392 0.979
201206 0.950 229.478 1.022
201209 0.860 231.407 0.917
201212 -0.010 229.601 -0.011
201303 1.020 232.773 1.082
201306 0.980 233.504 1.036
201309 1.050 234.149 1.107
201312 1.010 233.049 1.070
201403 0.920 236.293 0.961
201406 0.480 238.343 0.497
201409 0.440 238.031 0.456
201412 1.360 234.812 1.430
201503 0.960 236.119 1.004
201506 1.000 238.638 1.034
201509 1.170 237.945 1.214
201512 -0.330 236.525 -0.344
201603 0.740 238.132 0.767
201606 0.720 241.018 0.737
201609 0.030 241.428 0.031
201612 0.500 241.432 0.511
201703 0.430 243.801 0.435
201706 -0.170 244.955 -0.171
201709 0.670 246.819 0.670

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.

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

Shiller PE Ratio=Share Price/E10
=46.70/3.30
=14.15

* 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 Fluor Corp was 37.76. The lowest was 11.56. And the median was 21.35.


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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