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GuruFocus has detected 3 Warning Signs with M&T Bank Corp $MTB.
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M&T Bank Corp (NYSE:MTB)
Shiller PE Ratio
22.44 (As of Today)

As of today, M&T Bank Corp's current share price is $153.91. M&T Bank Corp's E10 for the quarter that ended in Dec. 2016 was $6.86. M&T Bank Corp's Shiller P/E Ratio for today is 22.44.

MTB' s Shiller PE Ratio Range Over the Past 10 Years
Min: 5.65   Max: 26.53
Current: 22.42

5.65
26.53

During the past 13 years, M&T Bank Corp's highest Shiller P/E Ratio was 26.53. The lowest was 5.65. And the median was 16.11.

MTB's Shiller PE Ratio is ranked lower than
55% of the 479 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 20.93 vs. MTB: 22.42 )

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 Dec. 2016 was $1.980. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $6.86 for the trailing ten years ended in Dec. 2016.


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
=153.91/6.86
=22.44

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

M&T Bank Corp's E10 for the fiscal year that ended in Dec16 is calculated as:

For example, M&T Bank Corp's adjusted earnings per share data for the three months ended in Dec. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2016 (Change)*Current CPI (Dec. 2016)
=1.98/241.432*241.432
=1.980

Current CPI (Dec. 2016) = 241.432.

M&T Bank Corp Quarterly Data

201412201503201506201509201512201603201606201609201612201703
per share eps 1.9201.6501.9801.9301.6201.7301.9802.1001.9802.120
CPI 234.812236.119238.638237.945236.525238.132241.018241.428241.432243.985
Adj_EPS 1.9741.6872.0031.9581.6541.7541.9832.1001.9802.098
201206201209201212201303201306201309201312201403201406201409
per share eps 1.7102.1702.1701.9802.5502.1101.5601.6101.9801.910
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 1.7992.2642.2822.0542.6372.1761.6161.6452.0061.937
200912201003201006201009201012201103201106201109201112201203
per share eps 1.0501.1501.4601.4801.5901.5902.4201.3201.0301.500
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 1.1741.2761.6171.6361.7511.7182.5881.4051.1021.579
200706200709200712200803200806200809200812200903200906200909
per share eps 1.9501.8300.6001.8201.4400.8200.9200.4900.3600.970
CPI 208.352208.490210.036213.528218.815218.783210.228212.709215.693215.969
Adj_EPS 2.2602.1190.6902.0581.5890.9051.0570.5560.4031.084

Add all the adjusted EPS together and divide 10 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 local exchange's currency.

M&T Bank Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ShillerPE 14.8210.1511.8014.7512.2815.1817.2718.4917.9222.79

M&T Bank Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ShillerPE 18.4918.6018.1517.9017.9216.5017.3017.0122.790.00
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