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BCE Inc  (NYSE:BCE) E10: $2.39 (As of Mar. 2019)

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.

BCE Inc's adjusted earnings per share data for the three months ended in Mar. 2019 was $0.613. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.39 for the trailing ten years ended in Mar. 2019.

As of today, BCE Inc's current stock price is $45.04. BCE Inc's E10 for the quarter that ended in Mar. 2019 was $2.39. BCE Inc's Shiller PE Ratio of today is 18.85.

During the past 13 years, the highest Shiller PE Ratio of BCE Inc was 21.85. The lowest was 6.87. And the median was 16.82.


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.

BCE Inc Annual Data

Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.46 2.12 2.28 2.27 2.27

BCE Inc Quarterly Data

Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
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 2.28 2.28 2.37 2.27 2.39

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.


BCE Inc Distribution

* The bar in red indicates where BCE Inc's E10 falls into.



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, BCE Inc's adjusted earnings per share data for the three months ended in Mar. 2019 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2019 (Change)*Current CPI (Mar. 2019)
=0.613267519258/254.202*254.202
=0.613

Current CPI (Mar. 2019) = 254.202.

BCE Inc Quarterly Data

per share eps CPI Adj_EPS
200906 0.400 215.693 0.471
200909 0.666 215.969 0.784
200912 0.437 215.949 0.514
201003 0.899 217.631 1.051
201006 0.771 217.965 0.899
201009 0.581 218.439 0.676
201012 0.417 219.179 0.483
201103 0.686 223.467 0.780
201106 0.778 225.722 0.876
201109 0.828 226.889 0.928
201112 0.606 225.672 0.682
201203 0.694 229.392 0.769
201206 0.914 229.478 1.013
201209 0.695 231.407 0.764
201212 0.919 229.601 1.018
201303 0.713 232.773 0.778
201306 0.717 233.504 0.781
201309 0.425 234.149 0.462
201312 0.592 233.049 0.646
201403 0.711 236.293 0.765
201406 0.720 238.343 0.768
201409 0.699 238.031 0.747
201412 0.546 234.812 0.591
201503 0.499 236.119 0.538
201506 0.728 238.638 0.775
201509 0.656 237.945 0.701
201512 0.423 236.525 0.455
201603 0.620 238.132 0.662
201606 0.690 241.018 0.728
201609 0.664 241.428 0.699
201612 0.562 241.432 0.592
201703 0.545 243.801 0.569
201706 0.639 244.955 0.663
201709 0.733 246.819 0.755
201712 0.493 246.524 0.509
201803 0.564 249.554 0.575
201806 0.602 251.989 0.607
201809 0.691 252.439 0.695
201812 0.506 251.233 0.512
201903 0.613 254.202 0.613

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.

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

Shiller PE Ratio=Share Price/E10
=45.04/2.39
=18.85

* 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 BCE Inc was 21.85. The lowest was 6.87. And the median was 16.82.


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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