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Magellan Midstream Partners LP  (NYSE:MMP) E10: $2.47 (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.

Magellan Midstream Partners LP's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.870. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.47 for the trailing ten years ended in Sep. 2017.

As of today, Magellan Midstream Partners LP's current stock price is $64.85. Magellan Midstream Partners LP's E10 for the quarter that ended in Sep. 2017 was $2.47. Magellan Midstream Partners LP's Shiller PE Ratio of today is 26.26.

During the past 13 years, the highest Shiller PE Ratio of Magellan Midstream Partners LP was 50.26. The lowest was 19.39. And the median was 33.10.


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.

Magellan Midstream Partners LP 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 1.47 1.61 1.73 1.98 2.24

Magellan Midstream Partners LP 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 2.18 2.24 2.32 2.40 2.47

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, Magellan Midstream Partners LP'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)
=0.87/246.819*246.819
=0.870

Current CPI (Sep. 2017) = 246.819.

Magellan Midstream Partners LP Quarterly Data

per share eps CPI Adj_EPS
200712 -0.440 210.036 -0.517
200803 0.550 213.528 0.636
200806 0.460 218.815 0.519
200809 0.146 218.783 0.165
200812 0.161 210.228 0.189
200903 0.095 212.709 0.110
200906 0.117 215.693 0.134
200909 0.136 215.969 0.155
200912 0.759 215.949 0.867
201003 0.300 217.631 0.340
201006 0.480 217.965 0.544
201009 0.255 218.439 0.288
201012 0.390 219.179 0.439
201103 0.400 223.467 0.442
201106 0.455 225.722 0.498
201109 0.490 226.889 0.533
201112 0.490 225.672 0.536
201203 0.410 229.392 0.441
201206 0.610 229.478 0.656
201209 0.220 231.407 0.235
201212 0.670 229.601 0.720
201303 0.500 232.773 0.530
201306 0.680 233.504 0.719
201309 0.550 234.149 0.580
201312 0.830 233.049 0.879
201403 1.070 236.293 1.118
201406 0.640 238.343 0.663
201409 0.870 238.031 0.902
201412 1.100 234.812 1.156
201503 0.810 236.119 0.847
201506 0.780 238.638 0.807
201509 1.100 237.945 1.141
201512 0.900 236.525 0.939
201603 0.910 238.132 0.943
201606 0.820 241.018 0.840
201609 0.850 241.428 0.869
201612 0.930 241.432 0.951
201703 0.980 243.801 0.992
201706 0.920 244.955 0.927
201709 0.870 246.819 0.870

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.

Magellan Midstream Partners LP's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=64.85/2.47
=26.26

* 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 Magellan Midstream Partners LP was 50.26. The lowest was 19.39. And the median was 33.10.


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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