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SLM (FRA:SM1) E10 : €1.62 (As of Sep. 2024)


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What is SLM 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.

SLM's adjusted earnings per share data for the three months ended in Sep. 2024 was €-0.207. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €1.62 for the trailing ten years ended in Sep. 2024.

During the past 12 months, SLM's average E10 Growth Rate was 16.40% per year. During the past 3 years, the average E10 Growth Rate was 17.20% per year. During the past 5 years, the average E10 Growth Rate was 17.10% per year. During the past 10 years, the average E10 Growth Rate was 14.20% 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 SLM was 107.20% per year. The lowest was -54.90% per year. And the median was 15.10% per year.

As of today (2024-12-13), SLM's current stock price is €25.40. SLM's E10 for the quarter that ended in Sep. 2024 was €1.62. SLM's Shiller PE Ratio of today is 15.68.

During the past 13 years, the highest Shiller PE Ratio of SLM was 142.22. The lowest was 6.63. And the median was 13.88.


SLM E10 Historical Data

The historical data trend for SLM'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.

SLM E10 Chart

SLM Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.79 0.79 1.13 1.40 1.49

SLM Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.48 1.49 1.63 1.74 1.62

Competitive Comparison of SLM's E10

For the Credit Services subindustry, SLM'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.


SLM's Shiller PE Ratio Distribution in the Credit Services Industry

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

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



SLM 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, SLM's adjusted earnings per share data for the three months ended in Sep. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=-0.207/133.0289*133.0289
=-0.207

Current CPI (Sep. 2024) = 133.0289.

SLM Quarterly Data

per share eps CPI Adj_EPS
201412 0.024 99.070 0.032
201503 0.092 99.621 0.123
201506 0.178 100.684 0.235
201509 0.080 100.392 0.106
201512 0.184 99.792 0.245
201603 0.126 100.470 0.167
201606 0.107 101.688 0.140
201609 0.107 101.861 0.140
201612 0.142 101.863 0.185
201703 0.187 102.862 0.242
201706 0.134 103.349 0.172
201709 0.143 104.136 0.183
201712 0.084 104.011 0.107
201803 0.227 105.290 0.287
201806 0.205 106.317 0.257
201809 0.197 106.507 0.246
201812 0.290 105.998 0.364
201903 0.310 107.251 0.385
201906 0.301 108.070 0.371
201909 0.263 108.329 0.323
201912 0.288 108.420 0.353
202003 0.787 108.902 0.961
202006 -0.204 108.767 -0.250
202009 0.382 109.815 0.463
202012 0.929 109.897 1.125
202103 1.470 111.754 1.750
202106 0.365 114.631 0.424
202109 0.204 115.734 0.234
202112 0.920 117.630 1.040
202203 0.409 121.301 0.449
202206 1.220 125.017 1.298
202209 0.293 125.227 0.311
202212 -0.312 125.222 -0.331
202303 0.439 127.348 0.459
202306 1.015 128.729 1.049
202309 0.103 129.860 0.106
202312 0.660 129.419 0.678
202403 1.168 131.776 1.179
202406 1.031 132.554 1.035
202409 -0.207 133.029 -0.207

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


SLM  (FRA:SM1) 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.

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

Shiller PE Ratio=Share Price/E10
=25.40/1.62
=15.68

* 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 SLM was 142.22. The lowest was 6.63. And the median was 13.88.


Be Aware

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


SLM E10 Related Terms

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


SLM Business Description

Traded in Other Exchanges
Address
300 Continental Drive, Newark, DE, USA, 19713
SLM Corp is the largest student lender in the country. It makes and holds student loans through the guaranteed Federal Family Education Loan Program as well as through private channels. It also engages in debt-management operations, including accounts receivable and collections services, and runs college savings programs.

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