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Quanta Services Inc  (NYSE:PWR) E10: $1.28 (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.

Quanta Services Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.560. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.28 for the trailing ten years ended in Sep. 2017.

As of today, Quanta Services Inc's current stock price is $39.09. Quanta Services Inc's E10 for the quarter that ended in Sep. 2017 was $1.28. Quanta Services Inc's Shiller PE Ratio of today is 30.54.

During the past 13 years, the highest Shiller PE Ratio of Quanta Services Inc was 168.54. The lowest was 16.35. And the median was 49.47.


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.

Quanta Services Inc 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 0.55 0.78 0.93 1.08 1.22

Quanta Services Inc 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 1.13 1.22 1.23 1.25 1.28

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, Quanta Services Inc'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)
=0.56/246.819*246.819
=0.560

Current CPI (Sep. 2017) = 246.819.

Quanta Services Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.170 210.036 0.200
200803 0.130 213.528 0.150
200806 0.210 218.815 0.237
200809 0.280 218.783 0.316
200812 0.240 210.228 0.282
200903 0.110 212.709 0.128
200906 0.170 215.693 0.195
200909 0.320 215.969 0.366
200912 0.210 215.949 0.240
201003 0.110 217.631 0.125
201006 0.160 217.965 0.181
201009 0.300 218.439 0.339
201012 0.150 219.179 0.169
201103 -0.080 223.467 -0.088
201106 0.150 225.722 0.164
201109 0.250 226.889 0.272
201112 0.310 225.672 0.339
201203 0.216 229.392 0.232
201206 0.308 229.478 0.331
201209 0.450 231.407 0.480
201212 0.460 229.601 0.494
201303 0.340 232.773 0.361
201306 0.330 233.504 0.349
201309 0.430 234.149 0.453
201312 0.770 233.049 0.815
201403 0.250 236.293 0.261
201406 0.369 238.343 0.382
201409 0.430 238.031 0.446
201412 0.300 234.812 0.315
201503 0.248 236.119 0.259
201506 0.220 238.638 0.228
201509 1.145 237.945 1.188
201512 0.060 236.525 0.063
201603 0.130 238.132 0.135
201606 0.110 241.018 0.113
201609 0.480 241.428 0.491
201612 0.560 241.432 0.572
201703 0.310 243.801 0.314
201706 0.410 244.955 0.413
201709 0.560 246.819 0.560

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.

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

Shiller PE Ratio=Share Price/E10
=39.09/1.28
=30.54

* 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 Quanta Services Inc was 168.54. The lowest was 16.35. And the median was 49.47.


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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