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Discover Financial Services (BSP:D1FS34) E10 : R$27.24 (As of Dec. 2024)


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What is Discover Financial Services 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.

Discover Financial Services's adjusted earnings per share data for the three months ended in Dec. 2024 was R$15.588. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is R$27.24 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Discover Financial Services's average E10 Growth Rate was 14.30% per year. During the past 3 years, the average E10 Growth Rate was 13.80% per year. During the past 5 years, the average E10 Growth Rate was 16.00% 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 Discover Financial Services was 18.60% per year. The lowest was 11.70% per year. And the median was 15.80% per year.

As of today (2025-03-03), Discover Financial Services's current stock price is R$557.76. Discover Financial Services's E10 for the quarter that ended in Dec. 2024 was R$27.24. Discover Financial Services's Shiller PE Ratio of today is 20.48.

During the past 13 years, the highest Shiller PE Ratio of Discover Financial Services was 19.79. The lowest was 4.48. And the median was 15.02.


Discover Financial Services E10 Historical Data

The historical data trend for Discover Financial Services'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.

Discover Financial Services E10 Chart

Discover Financial Services Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.16 21.55 23.82 22.42 27.24

Discover Financial Services Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 22.42 23.70 25.69 27.53 27.24

Competitive Comparison of Discover Financial Services's E10

For the Credit Services subindustry, Discover Financial Services'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.


Discover Financial Services's Shiller PE Ratio Distribution in the Credit Services Industry

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

* The bar in red indicates where Discover Financial Services's Shiller PE Ratio falls into.



Discover Financial Services 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, Discover Financial Services's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=15.588/133.1571*133.1571
=15.588

Current CPI (Dec. 2024) = 133.1571.

Discover Financial Services Quarterly Data

per share eps CPI Adj_EPS
201503 2.010 99.621 2.687
201506 2.069 100.684 2.736
201509 2.693 100.392 3.572
201512 2.212 99.792 2.952
201603 2.496 100.470 3.308
201606 2.516 101.688 3.295
201609 2.537 101.861 3.316
201612 2.348 101.863 3.069
201703 2.236 102.862 2.895
201706 2.307 103.349 2.972
201709 2.490 104.136 3.184
201712 1.631 104.011 2.088
201803 2.984 105.290 3.774
201806 3.601 106.317 4.510
201809 4.211 106.507 5.265
201812 3.942 105.998 4.952
201903 4.129 107.251 5.126
201906 4.473 108.070 5.511
201909 4.861 108.329 5.975
201912 4.618 108.420 5.672
202003 -0.611 108.902 -0.747
202006 -3.113 108.767 -3.811
202009 6.615 109.815 8.021
202012 6.662 109.897 8.072
202103 14.200 111.754 16.920
202106 13.954 114.631 16.209
202109 9.344 115.734 10.751
202112 10.292 117.630 11.651
202203 10.500 121.301 11.526
202206 9.919 125.017 10.565
202209 9.334 125.227 9.925
202212 9.888 125.222 10.515
202303 9.115 127.348 9.531
202306 8.470 128.729 8.761
202309 5.457 129.860 5.596
202312 3.773 129.419 3.882
202403 8.092 131.776 8.177
202406 16.239 132.554 16.313
202409 9.193 133.029 9.202
202412 15.588 133.157 15.588

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


Discover Financial Services  (BSP:D1FS34) 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.

Discover Financial Services's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=557.76/27.24
=20.48

* 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 Discover Financial Services was 19.79. The lowest was 4.48. And the median was 15.02.


Be Aware

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


Discover Financial Services E10 Related Terms

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


Discover Financial Services Business Description

Traded in Other Exchanges
Address
2500 Lake Cook Road, Riverwoods, IL, USA, 60015
Discover Financial Services is a bank operating in two distinct segments: direct banking and payment services. The company issues credit and debit cards and provides other consumer banking products including deposit accounts and personal loans. It also operates the Discover, Pulse, and Diners Club networks. The Discover network is the fourth-largest payment network in the United States as ranked by overall purchase volume, and Pulse is one of the largest ATM networks in the country.

Discover Financial Services Headlines

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