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Halliburton Co  (NYSE:HAL) E10: $1.38 (As of Jun. 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.

Halliburton Co's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.030. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.38 for the trailing ten years ended in Jun. 2017.

As of today, Halliburton Co's current stock price is $43.33. Halliburton Co's E10 for the quarter that ended in Jun. 2017 was $1.38. Halliburton Co's Shiller PE Ratio of today is 31.40.

During the past 13 years, the highest Shiller PE Ratio of Halliburton Co was 76.20. The lowest was 11.69. And the median was 25.70.


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.

Halliburton Co 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 1.88 2.25 2.82 2.49 1.60

Halliburton Co Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 1.76 1.70 1.60 1.55 1.38

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, Halliburton Co's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=0.03/244.955*244.955
=0.030

Current CPI (Jun. 2017) = 244.955.

Halliburton Co Quarterly Data

per share eps CPI Adj_EPS
200709 0.790 208.490 0.928
200712 0.760 210.036 0.886
200803 0.630 213.528 0.723
200806 0.550 218.815 0.616
200809 0.740 218.783 0.829
200812 0.520 210.228 0.606
200903 0.420 212.709 0.484
200906 0.290 215.693 0.329
200909 0.290 215.969 0.329
200912 0.270 215.949 0.306
201003 0.230 217.631 0.259
201006 0.530 217.965 0.596
201009 0.600 218.439 0.673
201012 0.660 219.179 0.738
201103 0.560 223.467 0.614
201106 0.800 225.722 0.868
201109 0.740 226.889 0.799
201112 0.980 225.672 1.064
201203 0.680 229.392 0.726
201206 0.790 229.478 0.843
201209 0.650 231.407 0.688
201212 0.720 229.601 0.768
201303 -0.020 232.773 -0.021
201306 0.690 233.504 0.724
201309 0.790 234.149 0.826
201312 0.910 233.049 0.956
201403 0.730 236.293 0.757
201406 0.910 238.343 0.935
201409 1.410 238.031 1.451
201412 1.060 234.812 1.106
201503 -0.760 236.119 -0.788
201506 0.060 238.638 0.062
201509 -0.060 237.945 -0.062
201512 -0.030 236.525 -0.031
201603 -2.810 238.132 -2.891
201606 -3.730 241.018 -3.791
201609 0.010 241.428 0.010
201612 -0.160 241.432 -0.162
201703 -0.040 243.801 -0.040
201706 0.030 244.955 0.030

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.

Halliburton Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=43.33/1.38
=31.40

* 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 Halliburton Co was 76.20. The lowest was 11.69. And the median was 25.70.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Related Terms


Headlines

From the Internet

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Expect Halliburton Monday

- Seekingalpha 2017-10-23 03:12:22

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