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Comerica Inc  (NYSE:CMA) E10: $2.37 (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.

Comerica Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $1.260. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $2.37 for the trailing ten years ended in Sep. 2017.

As of today, Comerica Inc's current stock price is $93.79. Comerica Inc's E10 for the quarter that ended in Sep. 2017 was $2.37. Comerica Inc's Shiller PE Ratio of today is 39.57.

During the past 13 years, the highest Shiller PE Ratio of Comerica Inc was 39.57. The lowest was 2.82. And the median was 11.07.


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.

Comerica Inc 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 3.42 3.26 3.06 2.74 2.40

Comerica Inc 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 2.53 2.40 2.39 2.36 2.37

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, Comerica Inc'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)
=1.26/246.819*246.819
=1.260

Current CPI (Sep. 2017) = 246.819.

Comerica Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.800 210.036 0.940
200803 0.730 213.528 0.844
200806 0.370 218.815 0.417
200809 0.190 218.783 0.214
200812 0.000 210.228 0.000
200903 -0.160 212.709 -0.186
200906 -0.110 215.693 -0.126
200909 -0.100 215.969 -0.114
200912 -0.420 215.949 -0.480
201003 -0.460 217.631 -0.522
201006 0.390 217.965 0.442
201009 0.330 218.439 0.373
201012 0.540 219.179 0.608
201103 0.570 223.467 0.630
201106 0.530 225.722 0.580
201109 0.510 226.889 0.555
201112 0.480 225.672 0.525
201203 0.660 229.392 0.710
201206 0.730 229.478 0.785
201209 0.610 231.407 0.651
201212 0.670 229.601 0.720
201303 0.700 232.773 0.742
201306 0.760 233.504 0.803
201309 0.780 234.149 0.822
201312 0.620 233.049 0.657
201403 0.730 236.293 0.763
201406 0.800 238.343 0.828
201409 0.820 238.031 0.850
201412 0.810 234.812 0.851
201503 0.730 236.119 0.763
201506 0.730 238.638 0.755
201509 0.740 237.945 0.768
201512 0.640 236.525 0.668
201603 0.340 238.132 0.352
201606 0.580 241.018 0.594
201609 0.840 241.428 0.859
201612 0.920 241.432 0.941
201703 1.110 243.801 1.124
201706 1.130 244.955 1.139
201709 1.260 246.819 1.260

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.

Comerica Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=93.79/2.37
=39.57

* 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 Comerica Inc was 39.57. The lowest was 2.82. And the median was 11.07.


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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