Switch to:
National Oilwell Varco Inc  (NYSE:NOV) E10: $2.94 (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.

National Oilwell Varco Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $-0.070. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.94 for the trailing ten years ended in Sep. 2017.

As of today, National Oilwell Varco Inc's current stock price is $32.02. National Oilwell Varco Inc's E10 for the quarter that ended in Sep. 2017 was $2.94. National Oilwell Varco Inc's Shiller PE Ratio of today is 10.89.

During the past 13 years, the highest Shiller PE Ratio of National Oilwell Varco Inc was 76.80. The lowest was 6.85. And the median was 19.23.


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.

National Oilwell Varco 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 3.25 3.79 4.29 4.02 3.23

National Oilwell Varco 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 3.50 3.23 3.13 3.04 2.94

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, National Oilwell Varco 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)
=-0.07/246.819*246.819
=-0.070

Current CPI (Sep. 2017) = 246.819.

National Oilwell Varco Inc Quarterly Data

per share eps CPI Adj_EPS
200712 1.050 210.036 1.234
200803 1.110 213.528 1.283
200806 1.040 218.815 1.173
200809 1.310 218.783 1.478
200812 1.420 210.228 1.667
200903 1.130 212.709 1.311
200906 0.530 215.693 0.606
200909 0.920 215.969 1.051
200912 0.940 215.949 1.074
201003 1.010 217.631 1.145
201006 0.960 217.965 1.087
201009 0.960 218.439 1.085
201012 1.050 219.179 1.182
201103 0.960 223.467 1.060
201106 1.130 225.722 1.236
201109 1.250 226.889 1.360
201112 1.350 225.672 1.477
201203 1.420 229.392 1.528
201206 1.420 229.478 1.527
201209 1.430 231.407 1.525
201212 1.550 229.601 1.666
201303 1.170 232.773 1.241
201306 1.240 233.504 1.311
201309 1.490 234.149 1.571
201312 1.540 233.049 1.631
201403 1.370 236.293 1.431
201406 1.440 238.343 1.491
201409 1.620 238.031 1.680
201412 1.390 234.812 1.461
201503 0.760 236.119 0.794
201506 0.740 238.638 0.765
201509 0.410 237.945 0.425
201512 -3.910 236.525 -4.080
201603 -0.320 238.132 -0.332
201606 -0.580 241.018 -0.594
201609 -3.620 241.428 -3.701
201612 -1.880 241.432 -1.922
201703 -0.320 243.801 -0.324
201706 -0.200 244.955 -0.202
201709 -0.070 246.819 -0.070

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.

National Oilwell Varco Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=32.02/2.94
=10.89

* 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 National Oilwell Varco Inc was 76.80. The lowest was 6.85. And the median was 19.23.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Related Terms


Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK