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WEC Energy Group Inc  (NYSE:WEC) E10: $2.46 (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.

WEC Energy Group Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.680. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.46 for the trailing ten years ended in Sep. 2017.

As of today, WEC Energy Group Inc's current stock price is $68.53. WEC Energy Group Inc's E10 for the quarter that ended in Sep. 2017 was $2.46. WEC Energy Group Inc's Shiller PE Ratio of today is 27.86.

During the past 13 years, the highest Shiller PE Ratio of WEC Energy Group Inc was 29.59. The lowest was 14.86. And the median was 21.95.


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.

WEC Energy Group 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 1.74 1.90 1.99 2.09 2.27

WEC Energy Group 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 2.25 2.27 2.35 2.41 2.46

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, WEC Energy Group 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)
=0.68/246.819*246.819
=0.680

Current CPI (Sep. 2017) = 246.819.

WEC Energy Group Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.395 210.036 0.464
200803 0.520 213.528 0.601
200806 0.245 218.815 0.276
200809 0.325 218.783 0.367
200812 0.425 210.228 0.499
200903 0.600 212.709 0.696
200906 0.270 215.693 0.309
200909 0.250 215.969 0.286
200912 0.500 215.949 0.571
201003 0.550 217.631 0.624
201006 0.370 217.965 0.419
201009 0.470 218.439 0.531
201012 0.530 219.179 0.597
201103 0.720 223.467 0.795
201106 0.460 225.722 0.503
201109 0.550 226.889 0.598
201112 0.500 225.672 0.547
201203 0.740 229.392 0.796
201206 0.510 229.478 0.549
201209 0.670 231.407 0.715
201212 0.430 229.601 0.462
201303 0.760 232.773 0.806
201306 0.520 233.504 0.550
201309 0.600 234.149 0.632
201312 0.630 233.049 0.667
201403 0.910 236.293 0.951
201406 0.580 238.343 0.601
201409 0.560 238.031 0.581
201412 0.540 234.812 0.568
201503 0.860 236.119 0.899
201506 0.350 238.638 0.362
201509 0.580 237.945 0.602
201512 0.560 236.525 0.584
201603 1.090 238.132 1.130
201606 0.570 241.018 0.584
201609 0.680 241.428 0.695
201612 0.610 241.432 0.624
201703 1.120 243.801 1.134
201706 0.630 244.955 0.635
201709 0.680 246.819 0.680

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.

WEC Energy Group Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=68.53/2.46
=27.86

* 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 WEC Energy Group Inc was 29.59. The lowest was 14.86. And the median was 21.95.


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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