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KBR Inc  (NYSE:KBR) E10: $0.51 (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.

KBR Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.320. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.51 for the trailing ten years ended in Sep. 2017.

As of today, KBR Inc's current stock price is $18.51. KBR Inc's E10 for the quarter that ended in Sep. 2017 was $0.51. KBR Inc's Shiller PE Ratio of today is 36.29.

During the past 13 years, the highest Shiller PE Ratio of KBR Inc was 40.82. The lowest was 10.53. And the median was 22.56.


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.

KBR 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 0.00 1.38 0.78 0.72 0.55

KBR 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 0.64 0.55 0.56 0.52 0.51

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, KBR 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)
=0.32/246.819*246.819
=0.320

Current CPI (Sep. 2017) = 246.819.

KBR Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.420 210.036 0.494
200803 0.580 213.528 0.670
200806 0.280 218.815 0.316
200809 0.510 218.783 0.575
200812 0.530 210.228 0.622
200903 0.480 212.709 0.557
200906 0.420 215.693 0.481
200909 0.450 215.969 0.514
200912 0.440 215.949 0.503
201003 0.290 217.631 0.329
201006 0.660 217.965 0.747
201009 0.620 218.439 0.701
201012 0.510 219.179 0.574
201103 0.690 223.467 0.762
201106 0.650 225.722 0.711
201109 1.220 226.889 1.327
201112 0.610 225.672 0.667
201203 0.610 229.392 0.656
201206 0.700 229.478 0.753
201209 -0.550 231.407 -0.587
201212 0.200 229.601 0.215
201303 0.590 232.773 0.626
201306 0.610 233.504 0.645
201309 -0.320 234.149 -0.337
201312 -0.380 233.049 -0.402
201403 -0.290 236.293 -0.303
201406 -0.060 238.343 -0.062
201409 0.210 238.031 0.218
201412 -8.520 234.812 -8.956
201503 0.300 236.119 0.314
201506 0.430 238.638 0.445
201509 0.380 237.945 0.394
201512 0.290 236.525 0.303
201603 0.300 238.132 0.311
201606 0.320 241.018 0.328
201609 -0.440 241.428 -0.450
201612 -0.610 241.432 -0.624
201703 0.260 243.801 0.263
201706 0.540 244.955 0.544
201709 0.320 246.819 0.320

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.

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

Shiller PE Ratio=Share Price/E10
=18.51/0.51
=36.29

* 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 KBR Inc was 40.82. The lowest was 10.53. And the median was 22.56.


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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