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Banco Macro SA  (NYSE:BMA) E10: $2.81 (As of Sep. 2017)

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 Macro SA's adjusted earnings per share data for the three months ended in Sep. 2017 was $2.447. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.81 for the trailing ten years ended in Sep. 2017.

As of today, Banco Macro SA's current stock price is $105.19. Banco Macro SA's E10 for the quarter that ended in Sep. 2017 was $2.81. Banco Macro SA's Shiller PE Ratio of today is 37.43.

During the past 13 years, the highest Shiller PE Ratio of Banco Macro SA was 45.84. The lowest was 10.94. And the median was 27.98.


Historical Data

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

* Premium members only.

Banco Macro SA Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 2.00 2.11 2.52

Banco Macro SA Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
E10 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 Premium Member Only Premium Member Only Premium Member Only 2.47 2.52 2.82 2.87 2.81

Competitive Comparison
* 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.


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.

For example, Banco Macro SA's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=2.44731114966/246.819*246.819
=2.447

Current CPI (Sep. 2017) = 246.819.

Banco Macro SA Quarterly Data

per share eps CPI Adj_EPS
200712 0.778 210.036 0.915
200803 0.699 213.528 0.809
200806 0.777 218.815 0.877
200809 0.761 218.783 0.859
200812 0.731 210.228 0.859
200903 0.705 212.709 0.818
200906 0.726 215.693 0.831
200909 0.833 215.969 0.952
200912 1.058 215.949 1.209
201003 1.061 217.631 1.203
201006 0.950 217.965 1.076
201009 1.138 218.439 1.286
201012 1.162 219.179 1.309
201103 1.069 223.467 1.181
201106 1.055 225.722 1.154
201109 1.257 226.889 1.367
201112 1.358 225.672 1.485
201203 1.265 229.392 1.361
201206 1.255 229.478 1.350
201209 1.435 231.407 1.531
201212 1.552 229.601 1.669
201303 1.533 232.773 1.626
201306 1.453 233.504 1.536
201309 1.708 234.149 1.801
201312 2.572 233.049 2.724
201403 2.560 236.293 2.674
201406 1.538 238.343 1.593
201409 2.007 238.031 2.081
201412 1.146 234.812 1.205
201503 2.161 236.119 2.259
201506 1.552 238.638 1.605
201509 2.010 237.945 2.085
201512 2.604 236.525 2.717
201603 1.649 238.132 1.709
201606 2.210 241.018 2.264
201609 1.872 241.428 1.914
201612 1.830 241.432 1.871
201703 1.904 243.801 1.927
201706 1.716 244.955 1.730
201709 2.447 246.819 2.447

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

Banco Macro SA's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=105.19/2.81
=37.43

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

During the past 13 years, the highest Shiller P/E Ratio of Banco Macro SA was 45.84. The lowest was 10.94. And the median was 27.98.


Be Aware

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


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