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PPL Corp  (NYSE:PPL) E10: $2.40 (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.

PPL Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.430. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.40 for the trailing ten years ended in Jun. 2017.

As of today, PPL Corp's current stock price is $37.86. PPL Corp's E10 for the quarter that ended in Jun. 2017 was $2.40. PPL Corp's Shiller PE Ratio of today is 15.78.

During the past 13 years, the highest Shiller PE Ratio of PPL Corp was 34.26. The lowest was 10.44. And the median was 13.49.


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.

PPL 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 2.46 2.38 2.43 2.36 2.41

PPL Corp 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 2.40 2.40 2.41 2.43 2.40

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, PPL Corp'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)
=0.43/244.955*244.955
=0.430

Current CPI (Jun. 2017) = 244.955.

PPL Corp Quarterly Data

per share eps CPI Adj_EPS
200709 0.840 208.490 0.987
200712 1.100 210.036 1.283
200803 0.690 213.528 0.792
200806 0.500 218.815 0.560
200809 0.540 218.783 0.605
200812 0.740 210.228 0.862
200903 0.640 212.709 0.737
200906 -0.020 215.693 -0.023
200909 0.050 215.969 0.057
200912 0.410 215.949 0.465
201003 0.660 217.631 0.743
201006 0.220 217.965 0.247
201009 0.510 218.439 0.572
201012 0.770 219.179 0.861
201103 0.820 223.467 0.899
201106 0.350 225.722 0.380
201109 0.760 226.889 0.821
201112 0.790 225.672 0.858
201203 0.930 229.392 0.993
201206 0.470 229.478 0.502
201209 0.610 231.407 0.646
201212 0.600 229.601 0.640
201303 0.650 232.773 0.684
201306 0.630 233.504 0.661
201309 0.620 234.149 0.649
201312 -0.180 233.049 -0.189
201403 0.490 236.293 0.508
201406 0.340 238.343 0.349
201409 0.740 238.031 0.762
201412 1.040 234.812 1.085
201503 0.960 236.119 0.996
201506 -1.130 238.638 -1.160
201509 0.580 237.945 0.597
201512 0.590 236.525 0.611
201603 0.710 238.132 0.730
201606 0.710 241.018 0.722
201609 0.690 241.428 0.700
201612 0.680 241.432 0.690
201703 0.590 243.801 0.593
201706 0.430 244.955 0.430

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.

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

Shiller PE Ratio=Share Price/E10
=37.86/2.40
=15.78

* 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 PPL Corp was 34.26. The lowest was 10.44. And the median was 13.49.


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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