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

As of today, M&T Bank Corp's current share price is $125.64. M&T Bank Corp's E10 for the quarter that ended in Mar. 2015 was $6.90. M&T Bank Corp's Shiller P/E Ratio for today is 18.21.

MTB' s 10-Year Shiller P/E Ratio Range
Min: 5.06   Max: 23.67
Current: 18.2

5.06
23.67

During the past 13 years, M&T Bank Corp's highest Shiller P/E Ratio was 23.67. The lowest was 5.06. And the median was 16.67.

MTB's Shiller P/E Ratiois ranked lower than
55% of the 765 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 17.18 vs. MTB: 18.20 )

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 Mar. 2015 was $1.656. 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 $6.90 for the trailing six years ended in Mar. 2015.


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
=125.64/6.90
=18.21

* 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 Dec14 is calculated as:

For example, M&T Bank Corp's adjusted earnings per share data for the three months ended in Mar. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2015*CPI of Current
=1.65/236.119*236.959
=1.656

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 236.959.

M&T Bank Corp Quarterly Data

201212201303201306201309201312201403201406201409201412201503
per share eps 2.3341.9802.5502.1101.5601.6101.9801.9101.9221.650
CPI 229.601232.773233.504234.149233.049236.293238.343238.031234.812236.119
Adj_EPS 2.4092.0162.5882.1351.5861.6151.9691.9011.9401.656
201006201009201012201103201106201109201112201203201206201209
per share eps 1.4601.4801.5871.5902.4201.3201.6651.5001.7102.170
CPI 217.965218.439219.179223.467225.722226.889225.672229.392229.478231.407
Adj_EPS 1.5871.6051.7161.6862.5401.3791.7481.5491.7662.222
200906200909200912201003
per share eps 0.3600.9701.0241.150
CPI 215.693215.969215.949217.631
Adj_EPS 0.3951.0641.1241.252

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 20.6020.3912.649.0511.1114.7012.8016.5218.5718.89

M&T Bank Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ShillerPE 16.5217.0418.1018.1118.5719.1719.2018.7818.8918.40
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