Switch to:
Occidental Petroleum Corp  (NYSE:OXY) E10: $3.53 (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.

Occidental Petroleum Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.250. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.53 for the trailing ten years ended in Sep. 2017.

As of today, Occidental Petroleum Corp's current stock price is $68.40. Occidental Petroleum Corp's E10 for the quarter that ended in Sep. 2017 was $3.53. Occidental Petroleum Corp's Shiller PE Ratio of today is 19.38.

During the past 13 years, the highest Shiller PE Ratio of Occidental Petroleum Corp was 27.12. The lowest was 10.63. And the median was 16.50.


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.

Occidental Petroleum Corp 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 5.86 6.46 6.18 4.44 3.87

Occidental Petroleum Corp 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 4.04 3.87 3.75 3.66 3.53

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, Occidental Petroleum Corp'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)
=0.25/246.819*246.819
=0.250

Current CPI (Sep. 2017) = 246.819.

Occidental Petroleum Corp Quarterly Data

per share eps CPI Adj_EPS
200712 1.750 210.036 2.056
200803 2.220 213.528 2.566
200806 2.780 218.815 3.136
200809 2.780 218.783 3.136
200812 0.550 210.228 0.646
200903 0.450 212.709 0.522
200906 0.840 215.693 0.961
200909 1.140 215.969 1.303
200912 1.150 215.949 1.314
201003 1.310 217.631 1.486
201006 1.310 217.965 1.483
201009 1.460 218.439 1.650
201012 1.490 219.179 1.678
201103 1.900 223.467 2.099
201106 2.230 225.722 2.438
201109 2.170 226.889 2.361
201112 2.010 225.672 2.198
201203 1.920 229.392 2.066
201206 1.640 229.478 1.764
201209 1.690 231.407 1.803
201212 0.420 229.601 0.451
201303 1.680 232.773 1.781
201306 1.640 233.504 1.734
201309 1.960 234.149 2.066
201312 2.040 233.049 2.161
201403 1.750 236.293 1.828
201406 1.820 238.343 1.885
201409 1.550 238.031 1.607
201412 -4.340 234.812 -4.562
201503 -0.280 236.119 -0.293
201506 0.230 238.638 0.238
201509 -3.420 237.945 -3.548
201512 -6.770 236.525 -7.065
201603 0.100 238.132 0.104
201606 -0.180 241.018 -0.184
201609 -0.320 241.428 -0.327
201612 -0.350 241.432 -0.358
201703 0.150 243.801 0.152
201706 0.660 244.955 0.665
201709 0.250 246.819 0.250

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.

Occidental Petroleum Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=68.40/3.53
=19.38

* 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 Occidental Petroleum Corp was 27.12. The lowest was 10.63. And the median was 16.50.


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

No Headline

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