Switch to:
Telefonica Brasil SA  (NYSE:VIV) E10: $1.49 (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.

Telefonica Brasil SA's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.146. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.49 for the trailing ten years ended in Jun. 2017.

As of today, Telefonica Brasil SA's current stock price is $16.12. Telefonica Brasil SA's E10 for the quarter that ended in Jun. 2017 was $1.49. Telefonica Brasil SA's Shiller PE Ratio of today is 10.82.

During the past 13 years, the highest Shiller PE Ratio of Telefonica Brasil SA was 11.45. The lowest was 6.53. And the median was 8.52.


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.

Telefonica Brasil SA 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 2.73 2.40 2.14 1.18 1.50

Telefonica Brasil SA 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 1.56 1.56 1.50 1.69 1.49

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, Telefonica Brasil SA'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)
=0.145657583298/244.955*244.955
=0.146

Current CPI (Jun. 2017) = 244.955.

Telefonica Brasil SA Quarterly Data

per share eps CPI Adj_EPS
200709 0.545 208.490 0.640
200712 0.717 210.036 0.836
200803 0.565 213.528 0.648
200806 0.774 218.815 0.867
200809 0.664 218.783 0.743
200812 0.598 210.228 0.697
200903 0.413 212.709 0.475
200906 0.636 215.693 0.722
200909 0.657 215.969 0.745
200912 0.391 215.949 0.443
201003 0.524 217.631 0.589
201006 0.646 217.965 0.726
201009 0.698 218.439 0.783
201012 0.678 219.179 0.758
201103 0.471 223.467 0.516
201106 0.782 225.722 0.849
201109 0.661 226.889 0.713
201112 0.680 225.672 0.738
201203 0.446 229.392 0.476
201206 0.460 229.478 0.491
201209 0.401 231.407 0.425
201212 0.515 229.601 0.549
201303 0.343 232.773 0.361
201306 0.350 233.504 0.367
201309 0.299 234.149 0.313
201312 0.456 233.049 0.479
201403 0.237 236.293 0.245
201406 0.742 238.343 0.763
201409 0.364 238.031 0.374
201412 0.414 234.812 0.432
201503 0.153 236.119 0.159
201506 0.180 238.638 0.185
201509 0.126 237.945 0.129
201512 0.157 236.525 0.163
201603 0.195 238.132 0.201
201606 0.114 241.018 0.116
201609 0.163 241.428 0.165
201612 0.203 241.432 0.206
201703 0.189 243.801 0.190
201706 0.146 244.955 0.146

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.

Telefonica Brasil SA's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=16.12/1.49
=10.82

* 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 Telefonica Brasil SA was 11.45. The lowest was 6.53. And the median was 8.52.


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