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The Hartford Financial Services Group Inc  (NYSE:HIG) E10: $0.20 (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.

The Hartford Financial Services Group Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.640. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.20 for the trailing ten years ended in Sep. 2017.

As of today, The Hartford Financial Services Group Inc's current stock price is $56.12. The Hartford Financial Services Group Inc's E10 for the quarter that ended in Sep. 2017 was $0.20. The Hartford Financial Services Group Inc's Shiller PE Ratio of today is 280.60.

During the past 13 years, the highest Shiller PE Ratio of The Hartford Financial Services Group Inc was 287.15. The lowest was 0.98. And the median was 11.88.


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.

The Hartford Financial Services Group Inc 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 2.71 2.85 2.16 1.68 0.90

The Hartford Financial Services Group Inc 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 1.21 0.90 0.69 0.45 0.20

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, The Hartford Financial Services Group Inc'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)
=0.64/246.819*246.819
=0.640

Current CPI (Sep. 2017) = 246.819.

The Hartford Financial Services Group Inc Quarterly Data

per share eps CPI Adj_EPS
200712 1.890 210.036 2.221
200803 0.460 213.528 0.532
200806 1.730 218.815 1.951
200809 -8.740 218.783 -9.860
200812 -2.700 210.228 -3.170
200903 -3.770 212.709 -4.375
200906 -0.060 215.693 -0.069
200909 -0.790 215.969 -0.903
200912 1.590 215.949 1.817
201003 -0.420 217.631 -0.476
201006 0.140 217.965 0.159
201009 1.340 218.439 1.514
201012 1.190 219.179 1.340
201103 0.990 223.467 1.093
201106 0.050 225.722 0.055
201109 0.110 226.889 0.120
201112 0.230 225.672 0.252
201203 0.180 229.392 0.194
201206 -0.260 229.478 -0.280
201209 0.010 231.407 0.011
201212 -0.130 229.601 -0.140
201303 -0.580 232.773 -0.615
201306 -0.420 233.504 -0.444
201309 0.600 234.149 0.632
201312 0.690 233.049 0.731
201403 1.030 236.293 1.076
201406 -1.040 238.343 -1.077
201409 0.860 238.031 0.892
201412 0.840 234.812 0.883
201503 1.080 236.119 1.129
201506 0.960 238.638 0.993
201509 0.900 237.945 0.934
201512 1.020 236.525 1.064
201603 0.790 238.132 0.819
201606 0.540 241.018 0.553
201609 1.120 241.428 1.145
201612 -0.190 241.432 -0.194
201703 1.000 243.801 1.012
201706 -0.110 244.955 -0.111
201709 0.640 246.819 0.640

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.

The Hartford Financial Services Group Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=56.12/0.20
=280.60

* 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 The Hartford Financial Services Group Inc was 287.15. The lowest was 0.98. And the median was 11.88.


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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