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NRG Energy Inc  (NYSE:NRG) E10: $-1.15 (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.

NRG Energy Inc's adjusted earnings per share data for the three months ended in Jun. 2017 was $-1.980. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-1.15 for the trailing ten years ended in Jun. 2017.

As of today, NRG Energy Inc's current stock price is $25.51. NRG Energy Inc's E10 for the quarter that ended in Jun. 2017 was $-1.15. NRG Energy Inc's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of NRG Energy Inc was 24.85. The lowest was 0.00. And the median was 14.67.


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.

NRG Energy 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 2.91 1.71 1.63 -0.34 -0.80

NRG Energy 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 -0.47 -0.50 -0.80 -0.88 -1.15

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, NRG Energy 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)
=-1.98/244.955*244.955
=-1.980

Current CPI (Jun. 2017) = 244.955.

NRG Energy Inc Quarterly Data

per share eps CPI Adj_EPS
200709 0.930 208.490 1.093
200712 0.350 210.036 0.408
200803 0.140 213.528 0.161
200806 0.480 218.815 0.537
200809 2.830 218.783 3.169
200812 0.980 210.228 1.142
200903 0.700 212.709 0.806
200906 1.560 215.693 1.772
200909 1.020 215.969 1.157
200912 0.120 215.949 0.136
201003 0.220 217.631 0.248
201006 0.810 217.965 0.910
201009 0.870 218.439 0.976
201012 -0.060 219.179 -0.067
201103 -1.060 223.467 -1.162
201106 2.530 225.722 2.746
201109 -0.240 226.889 -0.259
201112 -0.450 225.672 -0.488
201203 -0.920 229.392 -0.982
201206 1.080 229.478 1.153
201209 -0.010 231.407 -0.011
201212 1.060 229.601 1.131
201303 -1.030 232.773 -1.084
201306 0.370 233.504 0.388
201309 0.360 234.149 0.377
201312 -0.920 233.049 -0.967
201403 -0.180 236.293 -0.187
201406 -0.300 238.343 -0.308
201409 0.480 238.031 0.494
201412 0.210 234.812 0.219
201503 -0.370 236.119 -0.384
201506 -0.060 238.638 -0.062
201509 0.180 237.945 0.185
201512 -19.210 236.525 -19.895
201603 0.240 238.132 0.247
201606 -0.610 241.018 -0.620
201609 1.270 241.428 1.289
201612 -3.130 241.432 -3.176
201703 -0.520 243.801 -0.522
201706 -1.980 244.955 -1.980

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.

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

Shiller PE Ratio=Share Price/E10
=25.51/-1.15
=

* 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 NRG Energy Inc was 24.85. The lowest was 0.00. And the median was 14.67.


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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