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JPMorgan Chase & Co  (NYSE:JPM) E10: $4.82 (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.

JPMorgan Chase & Co's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.760. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.82 for the trailing ten years ended in Sep. 2017.

As of today, JPMorgan Chase & Co's current stock price is $99.48. JPMorgan Chase & Co's E10 for the quarter that ended in Sep. 2017 was $4.82. JPMorgan Chase & Co's Shiller PE Ratio of today is 20.64.

During the past 13 years, the highest Shiller PE Ratio of JPMorgan Chase & Co was 1489.33. The lowest was 9.43. And the median was 15.74.


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.

JPMorgan Chase & 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 3.58 3.67 4.00 4.35 4.57

JPMorgan Chase & Co 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 4.55 4.57 4.62 4.71 4.82

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, JPMorgan Chase & Co'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)
=1.76/246.819*246.819
=1.760

Current CPI (Sep. 2017) = 246.819.

JPMorgan Chase & Co Quarterly Data

per share eps CPI Adj_EPS
200712 0.860 210.036 1.011
200803 0.680 213.528 0.786
200806 0.530 218.815 0.598
200809 0.090 218.783 0.102
200812 0.040 210.228 0.047
200903 0.400 212.709 0.464
200906 0.280 215.693 0.320
200909 0.820 215.969 0.937
200912 0.750 215.949 0.857
201003 0.740 217.631 0.839
201006 1.090 217.965 1.234
201009 1.010 218.439 1.141
201012 1.120 219.179 1.261
201103 1.280 223.467 1.414
201106 1.270 225.722 1.389
201109 1.020 226.889 1.110
201112 0.900 225.672 0.984
201203 1.190 229.392 1.280
201206 1.210 229.478 1.301
201209 1.400 231.407 1.493
201212 1.390 229.601 1.494
201303 1.590 232.773 1.686
201306 1.600 233.504 1.691
201309 -0.170 234.149 -0.179
201312 1.290 233.049 1.366
201403 1.280 236.293 1.337
201406 1.460 238.343 1.512
201409 1.350 238.031 1.400
201412 1.200 234.812 1.261
201503 1.450 236.119 1.516
201506 1.540 238.638 1.593
201509 1.680 237.945 1.743
201512 1.320 236.525 1.377
201603 1.350 238.132 1.399
201606 1.550 241.018 1.587
201609 1.580 241.428 1.615
201612 1.710 241.432 1.748
201703 1.650 243.801 1.670
201706 1.820 244.955 1.834
201709 1.760 246.819 1.760

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.

JPMorgan Chase & Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=99.48/4.82
=20.64

* 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 JPMorgan Chase & Co was 1489.33. The lowest was 9.43. And the median was 15.74.


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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