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Islami Bank Bangladesh (DHA:ISLAMIBANK) E10 : BDT3.58 (As of Mar. 2023)


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What is Islami Bank Bangladesh 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.

Islami Bank Bangladesh's adjusted earnings per share data for the fiscal year that ended in Dec. 2022 was BDT3.830. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is BDT3.58 for the trailing ten years ended in Dec. 2022.

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.

As of today (2024-05-01), Islami Bank Bangladesh's current stock price is BDT 32.60. Islami Bank Bangladesh's E10 for the fiscal year that ended in Dec. 2022 was BDT3.58. Islami Bank Bangladesh's Shiller PE Ratio of today is 9.11.


Islami Bank Bangladesh E10 Historical Data

The historical data trend for Islami Bank Bangladesh'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.

Islami Bank Bangladesh E10 Chart

Islami Bank Bangladesh 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 - - - - 3.58

Islami Bank Bangladesh Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 - - - 3.58 -

Competitive Comparison of Islami Bank Bangladesh's E10

For the Banks - Regional subindustry, Islami Bank Bangladesh'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.


Islami Bank Bangladesh's Shiller PE Ratio Distribution in the Banks Industry

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

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



Islami Bank Bangladesh 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, Islami Bank Bangladesh's adjusted earnings per share data for the fiscal year that ended in Dec. 2022 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Dec. 2022 (Change)*Current CPI (Dec. 2022)
=3.83/125.2218*125.2218
=3.830

Current CPI (Dec. 2022) = 125.2218.

Islami Bank Bangladesh Annual Data

per_share_eps CPI Adj_EPS
201312 3.120 98.326 3.973
201412 2.470 99.070 3.122
201512 2.120 99.792 2.660
201612 2.780 101.863 3.418
201712 3.060 104.011 3.684
201812 3.920 105.998 4.631
201912 3.400 108.420 3.927
202012 2.980 109.897 3.396
202112 2.990 117.630 3.183
202212 3.830 125.222 3.830

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


Islami Bank Bangladesh  (DHA:ISLAMIBANK) 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.

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

Shiller PE Ratio=Share Price/E10
=32.60/3.58
=9.11

* 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.


Be Aware

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


Islami Bank Bangladesh E10 Related Terms

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


Islami Bank Bangladesh (DHA:ISLAMIBANK) Business Description

Traded in Other Exchanges
N/A
Address
Islami Bank Tower, 40, Dilkusha Commercial Area, Dhaka, BGD, 1000
Islami Bank Bangladesh PLC is engaged in commercial banking business based on Islamic Shariah. The company product and services categories include Deposit; Investment; NRB(Non-Resident Bangladeshi) Entrepreneurs Services; SME Information; Locker Service and Offshore Banking Units (OBU). The Bank conducts its business on the Shari'ah principle of Mudaraba, Musharaka, Bai-Murabaha, Bai-Muajjal, Hire Purchase under Shirkatul Melk, Bai-Salam, Bai-as-Sarf and Ujarah etc.

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