Switch to:
Humana Inc  (NYSE:HUM) E10: $8.03 (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.

Humana Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $4.460. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $8.03 for the trailing ten years ended in Jun. 2017.

As of today, Humana Inc's current stock price is $247.87. Humana Inc's E10 for the quarter that ended in Jun. 2017 was $8.03. Humana Inc's Shiller PE Ratio of today is 30.87.

During the past 13 years, the highest Shiller PE Ratio of Humana Inc was 63.04. The lowest was 10.68. And the median was 21.51.


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.

Humana 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 4.83 5.47 6.03 6.70 6.89

Humana Inc 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 7.08 7.27 6.89 7.66 8.03

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, Humana Inc'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)
=4.46/244.955*244.955
=4.460

Current CPI (Jun. 2017) = 244.955.

Humana Inc Quarterly Data

per share eps CPI Adj_EPS
200709 1.780 208.490 2.091
200712 1.430 210.036 1.668
200803 0.470 213.528 0.539
200806 1.240 218.815 1.388
200809 1.090 218.783 1.220
200812 1.040 210.228 1.212
200903 1.220 212.709 1.405
200906 1.670 215.693 1.897
200909 1.780 215.969 2.019
200912 1.480 215.949 1.679
201003 1.520 217.631 1.711
201006 2.000 217.965 2.248
201009 2.320 218.439 2.602
201012 0.630 219.179 0.704
201103 1.860 223.467 2.039
201106 2.710 225.722 2.941
201109 2.670 226.889 2.883
201112 1.220 225.672 1.324
201203 1.490 229.392 1.591
201206 2.160 229.478 2.306
201209 2.620 231.407 2.773
201212 1.200 229.601 1.280
201303 2.950 232.773 3.104
201306 2.630 233.504 2.759
201309 2.310 234.149 2.417
201312 -0.170 233.049 -0.179
201403 2.350 236.293 2.436
201406 2.190 238.343 2.251
201409 1.850 238.031 1.904
201412 0.970 234.812 1.012
201503 2.820 236.119 2.926
201506 2.850 238.638 2.925
201509 2.090 237.945 2.152
201512 0.670 236.525 0.694
201603 1.680 238.132 1.728
201606 2.060 241.018 2.094
201609 2.980 241.428 3.024
201612 -2.690 241.432 -2.729
201703 7.490 243.801 7.525
201706 4.460 244.955 4.460

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.

Humana Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=247.87/8.03
=30.87

* 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 Humana Inc was 63.04. The lowest was 10.68. And the median was 21.51.


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

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK