Switch to:
Tenet Healthcare Corp  (NYSE:THC) E10: $0.28 (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.

Tenet Healthcare Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $-3.640. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.28 for the trailing ten years ended in Sep. 2017.

As of today, Tenet Healthcare Corp's current stock price is $16.33. Tenet Healthcare Corp's E10 for the quarter that ended in Sep. 2017 was $0.28. Tenet Healthcare Corp's Shiller PE Ratio of today is 58.32.

During the past 13 years, the highest Shiller PE Ratio of Tenet Healthcare Corp was 301.91. The lowest was 20.33. And the median was 48.21.


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.

Tenet Healthcare 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 -4.48 -3.44 -0.48 0.11 0.73

Tenet Healthcare 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 0.42 0.73 0.61 0.59 0.28

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, Tenet Healthcare 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)
=-3.64/246.819*246.819
=-3.640

Current CPI (Sep. 2017) = 246.819.

Tenet Healthcare Corp Quarterly Data

per share eps CPI Adj_EPS
200712 -0.640 210.036 -0.752
200803 -0.240 213.528 -0.277
200806 -0.120 218.815 -0.135
200809 0.880 218.783 0.993
200812 -0.280 210.228 -0.329
200903 1.480 212.709 1.717
200906 -0.120 215.693 -0.137
200909 -0.040 215.969 -0.046
200912 0.160 215.949 0.183
201003 0.680 217.631 0.771
201006 0.200 217.965 0.226
201009 6.720 218.439 7.593
201012 0.560 219.179 0.631
201103 0.560 223.467 0.619
201106 0.440 225.722 0.481
201109 0.050 226.889 0.054
201112 -0.620 225.672 -0.678
201203 0.530 229.392 0.570
201206 -0.060 229.478 -0.065
201209 0.370 231.407 0.395
201212 0.440 229.601 0.473
201303 -0.850 232.773 -0.901
201306 -0.490 233.504 -0.518
201309 0.270 234.149 0.285
201312 -0.250 233.049 -0.265
201403 -0.330 236.293 -0.345
201406 -0.270 238.343 -0.280
201409 0.090 238.031 0.093
201412 0.620 234.812 0.652
201503 0.470 236.119 0.491
201506 -0.610 238.638 -0.631
201509 -0.290 237.945 -0.301
201512 -0.980 236.525 -1.023
201603 -0.600 238.132 -0.622
201606 -0.460 241.018 -0.471
201609 -0.080 241.428 -0.082
201612 -0.790 241.432 -0.808
201703 -0.530 243.801 -0.537
201706 -0.550 244.955 -0.554
201709 -3.640 246.819 -3.640

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.

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

Shiller PE Ratio=Share Price/E10
=16.33/0.28
=58.32

* 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 Tenet Healthcare Corp was 301.91. The lowest was 20.33. And the median was 48.21.


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