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UnitedHealth Group E10

: $7.54 (As of Jun. 2019)
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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.

UnitedHealth Group's adjusted earnings per share data for the three months ended in Jun. 2019 was $3.420. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $7.54 for the trailing ten years ended in Jun. 2019.

As of today, UnitedHealth Group's current stock price is $230.66. UnitedHealth Group's E10 for the quarter that ended in Jun. 2019 was $7.54. UnitedHealth Group's Shiller PE Ratio of today is 30.59.

During the past 13 years, the highest Shiller PE Ratio of UnitedHealth Group was 42.62. The lowest was 9.32. And the median was 19.62.


UnitedHealth Group E10 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.

UnitedHealth Group 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 4.22 4.58 5.06 5.83 6.88

UnitedHealth Group Quarterly Data
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
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 6.41 6.71 6.88 7.21 7.54

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.


UnitedHealth Group E10 Distribution

* The bar in red indicates where UnitedHealth Group's E10 falls into.



UnitedHealth Group E10 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, UnitedHealth Group's adjusted earnings per share data for the three months ended in Jun. 2019 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2019 (Change)*Current CPI (Jun. 2019)
=3.42/256.143*256.143
=3.420

Current CPI (Jun. 2019) = 256.143.

UnitedHealth Group Quarterly Data

per share eps CPI Adj_EPS
200909 0.890 215.969 1.056
200912 0.810 215.949 0.961
201003 1.030 217.631 1.212
201006 0.990 217.965 1.163
201009 1.140 218.439 1.337
201012 0.950 219.179 1.110
201103 1.220 223.467 1.398
201106 1.160 225.722 1.316
201109 1.170 226.889 1.321
201112 1.170 225.672 1.328
201203 1.310 229.392 1.463
201206 1.270 229.478 1.418
201209 1.500 231.407 1.660
201212 1.200 229.601 1.339
201303 1.160 232.773 1.276
201306 1.400 233.504 1.536
201309 1.530 234.149 1.674
201312 1.410 233.049 1.550
201403 1.100 236.293 1.192
201406 1.420 238.343 1.526
201409 1.630 238.031 1.754
201412 1.550 234.812 1.691
201503 1.460 236.119 1.584
201506 1.640 238.638 1.760
201509 1.650 237.945 1.776
201512 1.260 236.525 1.365
201603 1.670 238.132 1.796
201606 1.810 241.018 1.924
201609 2.030 241.428 2.154
201612 1.960 241.432 2.079
201703 2.230 243.801 2.343
201706 2.320 244.955 2.426
201709 2.510 246.819 2.605
201712 3.650 246.524 3.792
201803 2.870 249.554 2.946
201806 2.980 251.989 3.029
201809 3.240 252.439 3.288
201812 3.100 251.233 3.161
201903 3.560 254.202 3.587
201906 3.420 256.143 3.420

Add all the adjusted EPS together and divide 10 will get our e10.


UnitedHealth Group  (NYSE:UNH) 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.

UnitedHealth Group's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=230.66/7.54
=30.59

* 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 UnitedHealth Group was 42.62. The lowest was 9.32. And the median was 19.62.


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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