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M&T Bank Corp (NYSE:MTB)
Shiller P/E Ratio
18.80 (As of Today)

As of today, M&T Bank Corp's current share price is $122.18. M&T Bank Corp's E10 for the quarter that ended in Jun. 2014 was $6.47. M&T Bank Corp's Shiller P/E Ratio for today is 18.80.

MTB' s 10-Year Shiller P/E Ratio Range
Min: 5.08   Max: 24.3
Current: 18.8

5.08
24.3

During the past 13 years, M&T Bank Corp's highest Shiller P/E Ratio was 24.30. The lowest was 5.08. And the median was 16.76.

MTB's Shiller P/E Ratiois ranked higher than
84% of the 1931 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 27.85 vs. MTB: 18.80 )

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.

M&T Bank Corp's adjusted earnings per share data for the three months ended in Jun. 2014 was $1.979. 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 $6.47 for the trailing six years ended in Jun. 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.

M&T Bank Corp's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=122.18/6.47
=18.88

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

M&T Bank Corp's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, M&T Bank Corp's adjusted earnings per share data for the three months ended in Jun. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2014*CPI of Current
=1.98/238.343*238.21
=1.979

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

Current CPI = 238.21.

M&T Bank Corp Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 1.7102.1702.3341.9802.5502.1101.7101.6101.9801.910
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 1.7752.2342.4222.0262.6012.1471.7481.6231.9791.911
200912201003201006201009201012201103201106201109201112201203
per share eps 1.0241.1501.4601.4801.5871.5902.4201.3201.6651.500
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 1.1301.2591.5961.6141.7251.6952.5541.3861.7581.558
200812200903200906200909
per share eps 0.9170.4900.3600.970
CPI 210.228212.709215.693215.969
Adj_EPS 1.0390.5490.3981.070

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.

M&T Bank Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 23.2320.6720.4912.609.0211.0714.7812.8616.5718.36

M&T Bank Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 14.0015.9516.5716.9318.1618.1518.3619.1519.200.00
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