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Golar LNG Ltd  (NAS:GLNG) E10: \$0.83 (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.

Golar LNG Ltd's adjusted earnings per share data for the three months ended in Sep. 2017 was \$-0.430. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is \$0.83 for the trailing ten years ended in Sep. 2017.

As of today, Golar LNG Ltd's current stock price is \$29.99. Golar LNG Ltd's E10 for the quarter that ended in Sep. 2017 was \$0.83. Golar LNG Ltd's Shiller PE Ratio of today is 36.13.

During the past 13 years, the highest Shiller PE Ratio of Golar LNG Ltd was 64.26. The lowest was 8.75. And the median was 21.21.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Golar LNG Ltd Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 E10 1.87 1.93 1.81 1.55 1.24

Golar LNG Ltd Quarterly Data

 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 E10 1.29 1.24 1.09 0.85 0.83

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, Golar LNG Ltd'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) = -0.43 / 246.819 * 246.819 = -0.430

Current CPI (Sep. 2017) = 246.819.

Golar LNG Ltd Quarterly Data

 per share eps CPI Adj_EPS 200712 0.000 210.036 0.000 200803 -0.230 213.528 -0.266 200806 0.170 218.815 0.192 200809 0.770 218.783 0.869 200812 -0.860 210.228 -1.010 200903 -0.080 212.709 -0.093 200906 0.180 215.693 0.206 200909 -0.020 215.969 -0.023 200912 0.250 215.949 0.286 201003 -0.040 217.631 -0.045 201006 -0.090 217.965 -0.102 201009 0.060 218.439 0.068 201012 0.080 219.179 0.090 201103 0.240 223.467 0.265 201106 -0.010 225.722 -0.011 201109 0.170 226.889 0.185 201112 0.230 225.672 0.252 201203 0.189 229.392 0.203 201206 0.441 229.478 0.474 201209 0.557 231.407 0.594 201212 10.473 229.601 11.258 201303 1.063 232.773 1.127 201306 0.732 233.504 0.774 201309 -0.163 234.149 -0.172 201312 -0.352 233.049 -0.373 201403 0.160 236.293 0.167 201406 -0.300 238.343 -0.311 201409 0.083 238.031 0.086 201412 -0.424 234.812 -0.446 201503 0.230 236.119 0.240 201506 -0.029 238.638 -0.030 201509 -1.620 237.945 -1.680 201512 -0.720 236.525 -0.751 201603 -0.926 238.132 -0.960 201606 -0.909 241.018 -0.931 201609 -0.260 241.428 -0.266 201612 0.110 241.432 0.112 201703 -0.651 243.801 -0.659 201706 -0.730 244.955 -0.736 201709 -0.430 246.819 -0.430

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.

Golar LNG Ltd's Shiller P/E Ratio of today is calculated as

 Shiller PE Ratio = Share Price / E10 = 29.99 / 0.83 = 36.13

* 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 Golar LNG Ltd was 64.26. The lowest was 8.75. And the median was 21.21.

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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