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Lloyds Banking Group PLC  (NYSE:LYG) E10: $0.16 (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.

Lloyds Banking Group PLC's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.128. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.16 for the trailing ten years ended in Sep. 2017.

As of today, Lloyds Banking Group PLC's current stock price is $3.56. Lloyds Banking Group PLC's E10 for the quarter that ended in Sep. 2017 was $0.16. Lloyds Banking Group PLC's Shiller PE Ratio of today is 22.25.

During the past 13 years, the highest Shiller PE Ratio of Lloyds Banking Group PLC was 23.00. The lowest was 0.68. And the median was 3.71.


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.

Lloyds Banking Group PLC 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 1.87 1.62 0.00 0.72 0.34

Lloyds Banking Group PLC 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 0.47 0.34 0.31 0.21 0.16

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, Lloyds Banking Group PLC'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)
=0.128/246.819*246.819
=0.128

Current CPI (Sep. 2017) = 246.819.

Lloyds Banking Group PLC Quarterly Data

per share eps CPI Adj_EPS
200703 1.029 205.352 1.237
200706 0.105 208.352 0.125
200709 1.222 208.490 1.447
200712 -1.054 210.036 -1.239
200803 0.098 213.528 0.113
200806 0.096 218.815 0.109
200812 0.392 210.228 0.461
200906 0.478 215.693 0.547
200912 -0.643 215.949 -0.735
201003 1.807 217.631 2.050
201006 -1.719 217.965 -1.947
201009 0.087 218.439 0.099
201012 -0.393 219.179 -0.443
201103 -0.013 223.467 -0.014
201106 0.013 225.722 0.014
201109 -0.044 226.889 -0.048
201112 -0.012 225.672 -0.014
201203 0.000 229.392 0.000
201206 -0.062 229.478 -0.067
201209 -0.039 231.407 -0.041
201212 -0.032 229.601 -0.035
201303 0.133 232.773 0.141
201306 0.000 233.504 0.000
201309 -0.117 234.149 -0.124
201312 -0.102 233.049 -0.108
201403 0.106 236.293 0.111
201406 -0.054 238.343 -0.056
201409 0.052 238.031 0.054
201412 0.000 234.812 0.000
201503 0.072 236.119 0.075
201506 -0.012 238.638 -0.013
201509 0.049 237.945 0.051
201512 -0.060 236.525 -0.062
201603 0.034 238.132 0.035
201606 0.097 241.018 0.099
201609 0.005 241.428 0.005
201612 -0.005 241.432 -0.005
201703 0.079 243.801 0.080
201706 0.020 244.955 0.021
201709 0.128 246.819 0.128

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.

Lloyds Banking Group PLC's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=3.56/0.16
=22.25

* 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 Lloyds Banking Group PLC was 23.00. The lowest was 0.68. And the median was 3.71.


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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