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Plains All American Pipeline LP  (NYSE:PAA) E10: $1.81 (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.

Plains All American Pipeline LP's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.210. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.81 for the trailing ten years ended in Jun. 2017.

As of today, Plains All American Pipeline LP's current stock price is $20.39. Plains All American Pipeline LP's E10 for the quarter that ended in Jun. 2017 was $1.81. Plains All American Pipeline LP's Shiller PE Ratio of today is 11.27.

During the past 13 years, the highest Shiller PE Ratio of Plains All American Pipeline LP was 35.32. The lowest was 9.26. And the median was 24.98.


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.

Plains All American Pipeline LP 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 1.57 1.80 1.93 1.87 1.78

Plains All American Pipeline LP 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 1.80 1.79 1.78 1.82 1.81

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, Plains All American Pipeline LP'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)
=0.21/244.955*244.955
=0.210

Current CPI (Jun. 2017) = 244.955.

Plains All American Pipeline LP Quarterly Data

per share eps CPI Adj_EPS
200709 0.330 208.490 0.388
200712 0.235 210.036 0.274
200803 0.280 213.528 0.321
200806 0.045 218.815 0.050
200809 0.705 218.783 0.789
200812 0.280 210.228 0.326
200903 0.705 212.709 0.812
200906 0.390 215.693 0.443
200909 0.325 215.969 0.369
200912 0.250 215.949 0.284
201003 0.400 217.631 0.450
201006 0.325 217.965 0.365
201009 0.140 218.439 0.157
201012 0.340 219.179 0.380
201103 0.450 223.467 0.493
201106 0.565 225.722 0.613
201109 0.740 226.889 0.799
201112 0.680 225.672 0.738
201203 0.510 229.392 0.545
201206 0.930 229.478 0.993
201209 0.270 231.407 0.286
201212 0.700 229.601 0.747
201303 1.270 232.773 1.336
201306 0.570 233.504 0.598
201309 0.380 234.149 0.398
201312 0.580 233.049 0.610
201403 0.730 236.293 0.757
201406 0.450 238.343 0.462
201409 0.520 238.031 0.535
201412 0.680 234.812 0.709
201503 0.350 236.119 0.363
201506 -0.060 238.638 -0.062
201509 0.240 237.945 0.247
201512 0.240 236.525 0.249
201603 0.070 238.132 0.072
201606 -0.200 241.018 -0.203
201609 0.400 241.428 0.406
201612 0.160 241.432 0.162
201703 0.580 243.801 0.583
201706 0.210 244.955 0.210

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.

Plains All American Pipeline LP's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=20.39/1.81
=11.27

* 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 Plains All American Pipeline LP was 35.32. The lowest was 9.26. And the median was 24.98.


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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