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MasTec Inc  (NYSE:MTZ) E10: $1.23 (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.

MasTec Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.770. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.23 for the trailing ten years ended in Sep. 2017.

As of today, MasTec Inc's current stock price is $42.20. MasTec Inc's E10 for the quarter that ended in Sep. 2017 was $1.23. MasTec Inc's Shiller PE Ratio of today is 34.31.

During the past 13 years, the highest Shiller PE Ratio of MasTec Inc was 180.06. The lowest was 19.50. And the median was 39.79.


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.

MasTec 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 0.17 0.47 0.73 0.68 0.95

MasTec 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 0.86 0.95 1.00 1.09 1.23

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, MasTec 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)
=0.77/246.819*246.819
=0.770

Current CPI (Sep. 2017) = 246.819.

MasTec Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.110 210.036 0.129
200803 0.120 213.528 0.139
200806 0.230 218.815 0.259
200809 0.350 218.783 0.395
200812 0.260 210.228 0.305
200903 0.160 212.709 0.186
200906 0.250 215.693 0.286
200909 0.270 215.969 0.309
200912 0.220 215.949 0.251
201003 0.100 217.631 0.113
201006 0.180 217.965 0.204
201009 0.350 218.439 0.395
201012 0.430 219.179 0.484
201103 0.260 223.467 0.287
201106 0.510 225.722 0.558
201109 0.360 226.889 0.392
201112 0.100 225.672 0.109
201203 0.170 229.392 0.183
201206 0.370 229.478 0.398
201209 0.340 231.407 0.363
201212 0.440 229.601 0.473
201303 0.220 232.773 0.233
201306 0.410 233.504 0.433
201309 0.540 234.149 0.569
201312 0.480 233.049 0.508
201403 0.140 236.293 0.146
201406 0.390 238.343 0.404
201409 0.570 238.031 0.591
201412 0.250 234.812 0.263
201503 -0.080 236.119 -0.084
201506 -0.050 238.638 -0.052
201509 0.090 237.945 0.093
201512 -0.950 236.525 -0.991
201603 -0.030 238.132 -0.031
201606 0.300 241.018 0.307
201609 0.690 241.428 0.705
201612 0.650 241.432 0.665
201703 0.500 243.801 0.506
201706 0.990 244.955 0.998
201709 0.770 246.819 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.

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

Shiller PE Ratio=Share Price/E10
=42.20/1.23
=34.31

* 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 MasTec Inc was 180.06. The lowest was 19.50. And the median was 39.79.


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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