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Banco Santander SA (NYSE:SAN)
Shiller P/E Ratio
7.10 (As of Today)

As of today, Banco Santander SA's current share price is $9.82. Banco Santander SA's E10 for the quarter that ended in Dec. 2013 was $0.00. Banco Santander SA's Shiller P/E Ratio for today is 7.10.

SAN' s 10-Year Shiller P/E Ratio Range
Min: 3.58   Max: 23.3
Current: 7.1

3.58
23.3

During the past 13 years, Banco Santander SA's highest Shiller P/E Ratio was 23.30. The lowest was 3.58. And the median was 11.15.

SAN's Shiller P/E Ratiois ranked higher than
94% of the 841 Companies
in the Global Banks - Regional - Europe industry.

( Industry Median: 16.71 vs. SAN: 7.10 )

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.

Banco Santander SA's adjusted earnings per share data for the three months ended in Dec. 2013 was $0.124. 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 $0.00 for the trailing six years ended in Dec. 2013.


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.

Banco Santander SA's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=9.82/0.00
=

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

Banco Santander SA's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Banco Santander SA's adjusted earnings per share data for the three months ended in Dec. 2013 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2013*CPI of Current
=0.122615803815/233.049*236.511
=0.124

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

Current CPI = 236.511.

Banco Santander SA Quarterly Data

201103201106201109201112201206201209201212201306201309201312
per share eps 0.3400.2210.2540.0030.0120.0130.0400.1310.1360.123
CPI 223.467225.722226.889225.672229.478231.407229.601233.504234.149233.049
Adj_EPS 0.3590.2320.2650.0030.0130.0130.0410.1330.1380.124
200809200812200903200906200909200912201003201006201009201012
per share eps 0.4350.3750.3250.4520.3820.4340.3410.3290.3590.345
CPI 218.783210.228212.709215.693215.969215.949217.631217.965218.439219.179
Adj_EPS 0.4700.4220.3610.4960.4190.4750.3710.3570.3890.372
200709200712200803200806
per share eps 0.4820.6570.5170.595
CPI 208.490210.036213.528218.815
Adj_EPS 0.5470.7400.5720.643

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.

Banco Santander SA Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Jun13Dec13
ShillerPE 20.8721.6917.657.0010.826.244.925.674.750.00

Banco Santander SA Quarterly Data

Mar11Jun11Sep11Dec11Jun12Sep12Dec12Jun13Sep13Dec13
ShillerPE 6.426.264.884.924.455.115.674.756.060.00
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