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LHC Group Inc  (NAS:LHCG) E10: $1.73 (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.

LHC Group Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.610. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.73 for the trailing ten years ended in Sep. 2017.

As of today, LHC Group Inc's current stock price is $65.43. LHC Group Inc's E10 for the quarter that ended in Sep. 2017 was $1.73. LHC Group Inc's Shiller PE Ratio of today is 37.82.

During the past 13 years, the highest Shiller PE Ratio of LHC Group Inc was 41.51. The lowest was 13.90. And the median was 24.47.


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.

LHC 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 0.00 1.39 1.42 1.55 1.63

LHC 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 1.63 1.63 1.66 1.69 1.73

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, LHC 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)
=0.61/246.819*246.819
=0.610

Current CPI (Sep. 2017) = 246.819.

LHC Group Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.160 210.036 0.188
200803 0.310 213.528 0.358
200806 0.350 218.815 0.395
200809 0.450 218.783 0.508
200812 0.590 210.228 0.693
200903 0.620 212.709 0.719
200906 0.570 215.693 0.652
200909 0.540 215.969 0.617
200912 0.700 215.949 0.800
201003 0.640 217.631 0.726
201006 0.680 217.965 0.770
201009 0.730 218.439 0.825
201012 0.630 219.179 0.709
201103 0.419 223.467 0.463
201106 0.530 225.722 0.580
201109 -2.080 226.889 -2.263
201112 0.390 225.672 0.427
201203 0.420 229.392 0.452
201206 0.320 229.478 0.344
201209 0.360 231.407 0.384
201212 0.430 229.601 0.462
201303 0.370 232.773 0.392
201306 0.338 233.504 0.357
201309 0.310 234.149 0.327
201312 0.280 233.049 0.297
201403 0.240 236.293 0.251
201406 0.350 238.343 0.362
201409 0.360 238.031 0.373
201412 0.320 234.812 0.336
201503 0.390 236.119 0.408
201506 0.510 238.638 0.527
201509 0.500 237.945 0.519
201512 0.440 236.525 0.459
201603 0.440 238.132 0.456
201606 0.540 241.018 0.553
201609 0.540 241.428 0.552
201612 0.550 241.432 0.562
201703 0.530 243.801 0.537
201706 0.630 244.955 0.635
201709 0.610 246.819 0.610

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.

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

Shiller PE Ratio=Share Price/E10
=65.43/1.73
=37.82

* 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 LHC Group Inc was 41.51. The lowest was 13.90. And the median was 24.47.


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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