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MetLife Inc  (NYSE:MET) E10: $3.10 (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.

MetLife Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.770. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.10 for the trailing ten years ended in Jun. 2017.

As of today, MetLife Inc's current stock price is $52.94. MetLife Inc's E10 for the quarter that ended in Jun. 2017 was $3.10. MetLife Inc's Shiller PE Ratio of today is 17.08.

During the past 13 years, the highest Shiller PE Ratio of MetLife Inc was 17.14. The lowest was 5.60. And the median was 10.14.


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.

MetLife 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 4.19 4.15 4.28 4.02 3.21

MetLife Inc 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 4.10 4.00 3.21 3.16 3.10

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, MetLife Inc'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)
=0.77/244.955*244.955
=0.770

Current CPI (Jun. 2017) = 244.955.

MetLife Inc Quarterly Data

per share eps CPI Adj_EPS
200709 1.290 208.490 1.516
200712 1.430 210.036 1.668
200803 0.840 213.528 0.964
200806 1.260 218.815 1.411
200809 0.830 218.783 0.929
200812 1.220 210.228 1.422
200903 -0.710 212.709 -0.818
200906 -1.740 215.693 -1.976
200909 -0.790 215.969 -0.896
200912 0.360 215.949 0.408
201003 0.970 217.631 1.092
201006 1.840 217.965 2.068
201009 0.320 218.439 0.359
201012 -0.230 219.179 -0.257
201103 0.660 223.467 0.723
201106 1.000 225.722 1.085
201109 3.210 226.889 3.466
201112 0.900 225.672 0.977
201203 -0.160 229.392 -0.171
201206 2.120 229.478 2.263
201209 -0.920 231.407 -0.974
201212 0.080 229.601 0.085
201303 0.870 232.773 0.916
201306 0.430 233.504 0.451
201309 0.840 234.149 0.879
201312 0.770 233.049 0.809
201403 1.140 236.293 1.182
201406 1.170 238.343 1.202
201409 1.810 238.031 1.863
201412 1.300 234.812 1.356
201503 1.870 236.119 1.940
201506 0.920 238.638 0.944
201509 1.060 237.945 1.091
201512 0.710 236.525 0.735
201603 1.980 238.132 2.037
201606 0.060 241.018 0.061
201609 0.510 241.428 0.517
201612 -1.940 241.432 -1.968
201703 0.750 243.801 0.754
201706 0.770 244.955 0.770

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.

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

Shiller PE Ratio=Share Price/E10
=52.94/3.10
=17.08

* 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 MetLife Inc was 17.14. The lowest was 5.60. And the median was 10.14.


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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