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Bank of Montreal (NYSE:BMO)
Shiller P/E Ratio
14.40 (As of Today)

As of today, Bank of Montreal's current share price is $68.80. Bank of Montreal's E10 for the quarter that ended in Jan. 2014 was $5.11. Bank of Montreal's Shiller P/E Ratio for today is 14.40.

BMO' s 10-Year Shiller P/E Ratio Range
Min: 1.11   Max: 19.44
Current: 14.4

1.11
19.44

During the past 13 years, Bank of Montreal's highest Shiller P/E Ratio was 19.44. The lowest was 1.11. And the median was 3.21.

BMO's Shiller P/E Ratiois ranked higher than
77% of the 841 Companies
in the Global Banks - Regional - Canada industry.

( Industry Median: 17.04 vs. BMO: 14.40 )

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 Montreal's adjusted earnings per share data for the three months ended in Jan. 2014 was $1.446. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $5.11 for the trailing six years ended in Jan. 2014.


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 Montreal's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=68.80/5.11
=13.46

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

Bank of Montreal's E10 for the fiscal year that ended in Oct13 is calculated as:

For example, Bank of Montreal's adjusted earnings per share data for the three months ended in Jan. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2014*CPI of Current
=1.42986425339/233.916*236.511
=1.446

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 236.511.

Bank of Montreal Quarterly Data

201110201201201204201207201210201301201304201307201310201401
per share eps 1.3101.6351.4951.4311.6411.4951.3731.5951.5251.430
CPI 226.421226.665230.085229.104231.317230.280232.531233.596233.546233.916
Adj_EPS 1.3691.7061.5371.4781.6781.5361.3961.6151.5451.446
200904200907200910201001201004201007201010201101201104201107
per share eps 0.5290.8921.0381.0601.2121.0871.2251.3561.3641.110
CPI 213.240215.351216.177216.687218.009218.011218.711220.223224.906225.922
Adj_EPS 0.5870.9801.1351.1571.3141.1791.3251.4571.4341.162
200804200807200810200901
per share eps 1.2510.9300.8690.313
CPI 214.823219.964216.573211.143
Adj_EPS 1.3781.0000.9480.351

Add all the adjusted EPS together and divide 6 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 Montreal Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ShillerPE 2.972.823.292.861.882.2013.4412.7912.4314.36

Bank of Montreal Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ShillerPE 12.7912.5312.4512.2512.4313.0512.9812.8914.3612.88
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