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

As of today, M&T Bank Corp's current share price is $122.41. M&T Bank Corp's E10 for the quarter that ended in Jun. 2014 was $6.49. M&T Bank Corp's Shiller P/E Ratio for today is 18.90.

MTB' s 10-Year Shiller P/E Ratio Range
Min: 5.1   Max: 24.46
Current: 18.9

5.1
24.46

During the past 13 years, M&T Bank Corp's highest Shiller P/E Ratio was 24.46. The lowest was 5.10. And the median was 16.86.

MTB's Shiller P/E Ratiois ranked higher than
76% of the 1833 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 30.55 vs. MTB: 18.90 )

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 $1.987. 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 $6.49 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
=122.41/6.49
=18.86

* 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*239.229
=1.987

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

Current CPI = 239.229.

M&T Bank Corp Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 1.5001.7102.1702.3341.9802.5502.1101.7101.6101.980
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.343
Adj_EPS 1.5641.7832.2432.4322.0352.6132.1561.7551.6301.987
200909200912201003201006201009201012201103201106201109201112
per share eps 0.9701.0241.1501.4601.4801.5871.5902.4201.3201.665
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 1.0741.1341.2641.6021.6211.7321.7022.5651.3921.765
200809200812200903200906
per share eps 0.8200.9170.4900.360
CPI 218.783210.228212.709215.693
Adj_EPS 0.8971.0440.5510.399

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 23.3220.7420.5512.639.0411.1014.6812.7816.5118.49

M&T Bank Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 14.4913.9315.8816.5117.0318.1018.1018.4919.0919.14
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