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Weatherford International PLC  (NYSE:WFT) E10: $-0.68 (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.

Weatherford International PLC's adjusted earnings per share data for the three months ended in Sep. 2017 was $-0.260. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.68 for the trailing ten years ended in Sep. 2017.

As of today, Weatherford International PLC's current stock price is $4.05. Weatherford International PLC's E10 for the quarter that ended in Sep. 2017 was $-0.68. Weatherford International PLC's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Weatherford International PLC was 145.57. The lowest was 0.00. And the median was 26.86.


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.

Weatherford International PLC 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 0.63 0.55 0.41 0.07 -0.46

Weatherford International PLC 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 -0.35 -0.46 -0.55 -0.60 -0.68

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, Weatherford International PLC'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)
=-0.26/246.819*246.819
=-0.260

Current CPI (Sep. 2017) = 246.819.

Weatherford International PLC Quarterly Data

per share eps CPI Adj_EPS
200712 0.475 210.036 0.558
200803 0.380 213.528 0.439
200806 0.530 218.815 0.598
200809 0.530 218.783 0.598
200812 0.550 210.228 0.646
200903 0.230 212.709 0.267
200906 0.060 215.693 0.069
200909 0.110 215.969 0.126
200912 -0.280 215.949 -0.320
201003 -0.090 217.631 -0.102
201006 -0.060 217.965 -0.068
201009 0.130 218.439 0.147
201012 -0.260 219.179 -0.293
201103 0.040 223.467 0.044
201106 0.070 225.722 0.077
201109 0.160 226.889 0.174
201112 -0.020 225.672 -0.022
201203 0.160 229.392 0.172
201206 -1.110 229.478 -1.194
201209 0.090 231.407 0.096
201212 -0.160 229.601 -0.172
201303 0.030 232.773 0.032
201306 -0.150 233.504 -0.159
201309 0.030 234.149 0.032
201312 -0.350 233.049 -0.371
201403 -0.050 236.293 -0.052
201406 -0.190 238.343 -0.197
201409 0.100 238.031 0.104
201412 -0.610 234.812 -0.641
201503 -0.150 236.119 -0.157
201506 -0.630 238.638 -0.652
201509 -0.220 237.945 -0.228
201512 -1.550 236.525 -1.617
201603 -0.610 238.132 -0.632
201606 -0.630 241.018 -0.645
201609 -1.980 241.428 -2.024
201612 -0.550 241.432 -0.562
201703 -0.450 243.801 -0.456
201706 -0.170 244.955 -0.171
201709 -0.260 246.819 -0.260

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.

Weatherford International PLC's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=4.05/-0.68
=

* 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 Weatherford International PLC was 145.57. The lowest was 0.00. And the median was 26.86.


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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