GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Preferred Bank (NAS:PFBC) » Definitions » E10

Preferred Bank (Preferred Bank) E10 : $5.44 (As of Sep. 2023)


View and export this data going back to 1999. Start your Free Trial

What is Preferred Bank E10?

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.

Preferred Bank's adjusted earnings per share data for the three months ended in Sep. 2023 was $2.710. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $5.44 for the trailing ten years ended in Sep. 2023.

During the past 12 months, Preferred Bank's average E10 Growth Rate was 24.20% per year. During the past 3 years, the average E10 Growth Rate was 34.30% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Preferred Bank was 34.30% per year. The lowest was -56.50% per year. And the median was -11.10% per year.

As of today (2024-04-27), Preferred Bank's current stock price is $76.45. Preferred Bank's E10 for the quarter that ended in Sep. 2023 was $5.44. Preferred Bank's Shiller PE Ratio of today is 14.05.

During the past 13 years, the highest Shiller PE Ratio of Preferred Bank was 437.86. The lowest was 9.20. And the median was 18.61.


Preferred Bank E10 Historical Data

The historical data trend for Preferred Bank's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Preferred Bank E10 Chart

Preferred Bank Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.11 1.90 2.96 3.71 4.60

Preferred Bank Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.38 4.60 4.90 5.17 5.44

Competitive Comparison of Preferred Bank's E10

For the Banks - Regional subindustry, Preferred Bank's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Preferred Bank's Shiller PE Ratio Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Preferred Bank's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Preferred Bank's Shiller PE Ratio falls into.



Preferred Bank E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Preferred Bank's adjusted earnings per share data for the three months ended in Sep. 2023 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2023 (Change)*Current CPI (Sep. 2023)
=2.71/129.8595*129.8595
=2.710

Current CPI (Sep. 2023) = 129.8595.

Preferred Bank Quarterly Data

per share eps CPI Adj_EPS
201312 0.430 98.326 0.568
201403 0.380 99.695 0.495
201406 0.450 100.560 0.581
201409 0.460 100.428 0.595
201412 0.490 99.070 0.642
201503 0.480 99.621 0.626
201506 0.550 100.684 0.709
201509 0.570 100.392 0.737
201512 0.540 99.792 0.703
201603 0.560 100.470 0.724
201606 0.610 101.688 0.779
201609 0.690 101.861 0.880
201612 0.700 101.863 0.892
201703 0.710 102.862 0.896
201706 0.800 103.349 1.005
201709 0.940 104.136 1.172
201712 0.510 104.011 0.637
201803 1.090 105.290 1.344
201806 1.140 106.317 1.392
201809 1.200 106.507 1.463
201812 1.220 105.998 1.495
201903 1.230 107.251 1.489
201906 1.310 108.070 1.574
201909 1.320 108.329 1.582
201912 1.310 108.420 1.569
202003 1.080 108.902 1.288
202006 1.030 108.767 1.230
202009 1.150 109.815 1.360
202012 1.400 109.897 1.654
202103 1.420 111.754 1.650
202106 1.440 114.631 1.631
202109 1.760 115.734 1.975
202112 1.800 117.630 1.987
202203 1.740 121.301 1.863
202206 1.870 125.017 1.942
202209 2.400 125.227 2.489
202212 2.700 125.222 2.800
202303 2.610 127.348 2.661
202306 2.610 128.729 2.633
202309 2.710 129.860 2.710

Add all the adjusted EPS together and divide 10 will get our e10.


Preferred Bank  (NAS:PFBC) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

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.

Preferred Bank's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=76.45/5.44
=14.05

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Shiller P/E Ratio of Preferred Bank was 437.86. The lowest was 9.20. And the median was 18.61.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Preferred Bank E10 Related Terms

Thank you for viewing the detailed overview of Preferred Bank's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Preferred Bank (Preferred Bank) Business Description

Traded in Other Exchanges
Address
601 South Figueroa Street, 48th Floor, Los Angeles, CA, USA, 90017
Preferred Bank is a commercial bank located in California. Its products and services are divided into Personal Banking, Business Banking, and Commercial Banking which includes Checking accounts, Savings accounts, CDs, Loans and Credit, Electronic banking and Treasury Management. It provides personalized deposit services, real estate finance, commercial loans, and trade finance credit facilities to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals and high-net-worth individuals. The bank generates a majority of its revenue from Southern and Northern California and Flushing.

Preferred Bank (Preferred Bank) Headlines

From GuruFocus

Preferred Bank Reports Quarterly Earnings

By Marketwired 10-17-2023

Preferred Bank's Dividend Analysis

By GuruFocus Research 01-05-2024

Preferred Bank Announces Director Departure

By GuruFocusNews GuruFocusNews 06-10-2022

Preferred Bank Announces Director Departure

By GuruFocusNews GuruFocusNews 05-21-2022

Preferred Bank Increases Quarterly Cash Dividend

By Value_Insider Value_Insider 12-15-2022

Preferred Bank Announces Director Departure

By GuruFocusNews GuruFocusNews 05-31-2022

Preferred Bank Reports Quarterly Earnings

By Marketwired 07-19-2023

Preferred Bank Completes Stock Repurchase

By PurpleRose PurpleRose 08-04-2022

Preferred Bank Declares Quarterly Cash Dividend

By GuruFocusNews GuruFocusNews 07-02-2022