Switch to:
Valero Energy Corp  (NYSE:VLO) E10: $3.31 (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.

Valero Energy Corp's adjusted earnings per share data for the three months ended in Jun. 2017 was $1.230. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $3.31 for the trailing ten years ended in Jun. 2017.

As of today, Valero Energy Corp's current stock price is $77.63. Valero Energy Corp's E10 for the quarter that ended in Jun. 2017 was $3.31. Valero Energy Corp's Shiller PE Ratio of today is 23.45.

During the past 13 years, the highest Shiller PE Ratio of Valero Energy Corp was 25.67. The lowest was 3.71. And the median was 11.84.


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.

Valero Energy 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 3.40 3.77 4.08 4.18 3.72

Valero Energy 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 4.03 3.86 3.72 3.61 3.31

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, Valero Energy 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)
=1.23/244.955*244.955
=1.230

Current CPI (Jun. 2017) = 244.955.

Valero Energy Corp Quarterly Data

per share eps CPI Adj_EPS
200709 2.090 208.490 2.456
200712 1.080 210.036 1.260
200803 0.480 213.528 0.551
200806 1.370 218.815 1.534
200809 2.180 218.783 2.441
200812 -6.240 210.228 -7.271
200903 0.590 212.709 0.679
200906 -0.480 215.693 -0.545
200909 -1.120 215.969 -1.270
200912 -2.590 215.949 -2.938
201003 -0.200 217.631 -0.225
201006 1.030 217.965 1.158
201009 0.510 218.439 0.572
201012 -0.770 219.179 -0.861
201103 0.170 223.467 0.186
201106 1.300 225.722 1.411
201109 2.110 226.889 2.278
201112 0.090 225.672 0.098
201203 -0.780 229.392 -0.833
201206 1.500 229.478 1.601
201209 1.210 231.407 1.281
201212 1.820 229.601 1.942
201303 1.180 232.773 1.242
201306 0.850 233.504 0.892
201309 0.570 234.149 0.596
201312 2.360 233.049 2.481
201403 1.540 236.293 1.596
201406 1.100 238.343 1.131
201409 2.000 238.031 2.058
201412 2.210 234.812 2.305
201503 1.870 236.119 1.940
201506 2.660 238.638 2.730
201509 2.790 237.945 2.872
201512 0.690 236.525 0.715
201603 1.050 238.132 1.080
201606 1.730 241.018 1.758
201609 1.330 241.428 1.349
201612 0.820 241.432 0.832
201703 0.680 243.801 0.683
201706 1.230 244.955 1.230

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.

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

Shiller PE Ratio=Share Price/E10
=77.63/3.31
=23.45

* 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 Valero Energy Corp was 25.67. The lowest was 3.71. And the median was 11.84.


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

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