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Bank of America Corporation (NYSE:BAC)
Shiller P/E Ratio
12.35 (As of Today)

As of today, Bank of America Corporation's current share price is $14.08. Bank of America Corporation's E10 for the quarter that ended in Mar. 2016 was $1.14. Bank of America Corporation's Shiller P/E Ratio for today is 12.35.

BAC' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 0.96   Max: 17.92
Current: 12.32

0.96
17.92

During the past 13 years, Bank of America Corporation's highest Shiller P/E Ratio was 17.92. The lowest was 0.96. And the median was 6.89.

BAC's Shiller P/E Ratio is ranked higher than
75% of the 504 Companies
in the Global Banks - Global industry.

( Industry Median: 17.22 vs. BAC: 12.32 )

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.

Bank of America Corporation's adjusted earnings per share data for the three months ended in Mar. 2016 was $0.210. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.14 for the trailing ten years ended in Mar. 2016.


Definition

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.

Bank of America Corporation's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=14.08/1.14
=12.35

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Bank of America Corporation's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, Bank of America Corporation's adjusted earnings per share data for the three months ended in Mar. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=0.21/238.132*238.132
=0.210

Current CPI (Mar. 2016) = 238.132.

Bank of America Corporation Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 0.279-0.0500.190-0.0400.2590.2500.4300.3500.2800.210
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525238.132
Adj_EPS 0.285-0.0500.190-0.0400.2630.2520.4290.3500.2820.210
201106201109201112201203201206201209201212201303201306201309
per share eps -0.9000.5600.1480.0300.1900.0000.0340.1000.3200.200
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS -0.9490.5880.1560.0310.1970.0000.0350.1020.3260.203
200812200903200906200909200912201003201006201009201012201103
per share eps -0.4820.4400.330-0.260-0.6010.2800.270-0.770-0.1560.170
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS -0.5460.4930.364-0.287-0.6630.3060.295-0.839-0.1690.181
200606200609200612200703200706200709200712200803200806200809
per share eps 1.1901.1801.1511.1601.2800.8200.0240.2300.7200.150
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 1.3971.3851.3581.3451.4630.9370.0270.2570.7840.163

Add all the adjusted EPS together and divide 10 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Bank of America Corporation Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 16.8312.224.344.964.822.164.977.7911.2413.52

Bank of America Corporation Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 7.798.988.389.9611.2410.2712.0411.6913.5611.83
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