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JetBlue Airways Corp  (NAS:JBLU) E10: $0.84 (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.

JetBlue Airways Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.640. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.84 for the trailing ten years ended in Jun. 2017.

As of today, JetBlue Airways Corp's current stock price is $20.34. JetBlue Airways Corp's E10 for the quarter that ended in Jun. 2017 was $0.84. JetBlue Airways Corp's Shiller PE Ratio of today is 24.21.

During the past 13 years, the highest Shiller PE Ratio of JetBlue Airways Corp was 70.19. The lowest was 13.92. And the median was 34.17.


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.

JetBlue Airways 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 0.00 0.18 0.27 0.50 0.73

JetBlue Airways Corp 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 0.65 0.69 0.73 0.78 0.84

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, JetBlue Airways Corp'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)
=0.64/244.955*244.955
=0.640

Current CPI (Jun. 2017) = 244.955.

JetBlue Airways Corp Quarterly Data

per share eps CPI Adj_EPS
200709 0.120 208.490 0.141
200712 -0.020 210.036 -0.023
200803 -0.050 213.528 -0.057
200806 -0.040 218.815 -0.045
200809 -0.030 218.783 -0.034
200812 -0.250 210.228 -0.291
200903 0.050 212.709 0.058
200906 0.070 215.693 0.079
200909 0.050 215.969 0.057
200912 0.040 215.949 0.045
201003 0.000 217.631 0.000
201006 0.100 217.965 0.112
201009 0.180 218.439 0.202
201012 0.030 219.179 0.034
201103 0.010 223.467 0.011
201106 0.080 225.722 0.087
201109 0.110 226.889 0.119
201112 0.070 225.672 0.076
201203 0.090 229.392 0.096
201206 0.160 229.478 0.171
201209 0.140 231.407 0.148
201212 0.000 229.601 0.000
201303 0.050 232.773 0.053
201306 0.110 233.504 0.115
201309 0.210 234.149 0.220
201312 0.140 233.049 0.147
201403 0.010 236.293 0.010
201406 0.680 238.343 0.699
201409 0.240 238.031 0.247
201412 0.260 234.812 0.271
201503 0.400 236.119 0.415
201506 0.440 238.638 0.452
201509 0.580 237.945 0.597
201512 0.560 236.525 0.580
201603 0.610 238.132 0.627
201606 0.530 241.018 0.539
201609 0.580 241.428 0.588
201612 0.520 241.432 0.528
201703 0.250 243.801 0.251
201706 0.640 244.955 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.

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

Shiller PE Ratio=Share Price/E10
=20.34/0.84
=24.21

* 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 JetBlue Airways Corp was 70.19. The lowest was 13.92. And the median was 34.17.


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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