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

As of today, M&T Bank Corp's current share price is $125.11. M&T Bank Corp's E10 for the quarter that ended in Sep. 2014 was $6.64. M&T Bank Corp's Shiller P/E Ratio for today is 18.84.

MTB' s 10-Year Shiller P/E Ratio Range
Min: 5.09   Max: 24.43
Current: 18.8

5.09
24.43

During the past 13 years, M&T Bank Corp's highest Shiller P/E Ratio was 24.43. The lowest was 5.09. And the median was 16.88.

MTB's Shiller P/E Ratiois ranked higher than
86% of the 2636 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 9999.00 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 Sep. 2014 was $1.890. 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 $6.64 for the trailing six years ended in Sep. 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
=125.11/6.64
=18.84

* 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 Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=1.91/238.031*235.51
=1.890

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

Current CPI = 235.51.

M&T Bank Corp Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 1.7102.1702.3341.9802.5502.1102.1581.6101.9801.910
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 1.7552.2082.3942.0032.5722.1222.1811.6051.9561.890
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 1.1171.2441.5781.5961.7051.6762.5251.3701.7381.540
200812200903200906200909
per share eps 0.9170.4900.3600.970
CPI 210.228212.709215.693215.969
Adj_EPS 1.0270.5430.3931.058

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 23.3020.7220.5312.629.0311.0814.6512.7616.6018.19

M&T Bank Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 14.0215.9816.6016.9718.1918.1918.1918.9519.0018.73
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