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Newfield Exploration Co  (NYSE:NFX) E10: $-2.50 (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.

Newfield Exploration Co's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.490. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-2.50 for the trailing ten years ended in Jun. 2017.

As of today, Newfield Exploration Co's current stock price is $29.78. Newfield Exploration Co's E10 for the quarter that ended in Jun. 2017 was $-2.50. Newfield Exploration Co's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Newfield Exploration Co was 1865.00. The lowest was 7.19. And the median was 28.71.


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.

Newfield Exploration Co 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 0.92 0.79 1.13 -1.30 -2.52

Newfield Exploration Co 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 -2.24 -2.46 -2.52 -2.39 -2.50

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, Newfield Exploration Co'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)
=0.49/244.955*244.955
=0.490

Current CPI (Jun. 2017) = 244.955.

Newfield Exploration Co Quarterly Data

per share eps CPI Adj_EPS
200709 0.640 208.490 0.752
200712 2.390 210.036 2.787
200803 -0.500 213.528 -0.574
200806 -1.890 218.815 -2.116
200809 5.480 218.783 6.136
200812 -6.100 210.228 -7.108
200903 -5.350 212.709 -6.161
200906 -0.300 215.693 -0.341
200909 0.580 215.969 0.658
200912 0.880 215.949 0.998
201003 1.840 217.631 2.071
201006 0.720 217.965 0.809
201009 1.200 218.439 1.346
201012 0.160 219.179 0.179
201103 -0.130 223.467 -0.143
201106 1.620 225.722 1.758
201109 1.990 226.889 2.148
201112 0.500 225.672 0.543
201203 0.860 229.392 0.918
201206 1.000 229.478 1.067
201209 -0.240 231.407 -0.254
201212 -10.420 229.601 -11.117
201303 -0.060 232.773 -0.063
201306 0.820 233.504 0.860
201309 0.050 234.149 0.052
201312 0.130 233.049 0.137
201403 2.070 236.293 2.146
201406 -0.160 238.343 -0.164
201409 2.020 238.031 2.079
201412 2.600 234.812 2.712
201503 -3.300 236.119 -3.423
201506 -6.090 238.638 -6.251
201509 -7.520 237.945 -7.742
201512 -4.010 236.525 -4.153
201603 -3.520 238.132 -3.621
201606 -3.360 241.018 -3.415
201609 0.240 241.428 0.244
201612 0.140 241.432 0.142
201703 0.730 243.801 0.733
201706 0.490 244.955 0.490

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.

Newfield Exploration Co's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=29.78/-2.50
=

* 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 Newfield Exploration Co was 1865.00. The lowest was 7.19. And the median was 28.71.


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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