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M&T Bank Corp  (NYSE:MTB) E10: $6.97 (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.

M&T Bank Corp's adjusted earnings per share data for the three months ended in Sep. 2017 was $2.210. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $6.97 for the trailing ten years ended in Sep. 2017.

As of today, M&T Bank Corp's current stock price is $177.78. M&T Bank Corp's E10 for the quarter that ended in Sep. 2017 was $6.97. M&T Bank Corp's Shiller PE Ratio of today is 25.51.

During the past 13 years, the highest Shiller PE Ratio of M&T Bank Corp was 25.69. The lowest was 5.64. And the median was 16.12.


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.

M&T Bank Corp 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 6.49 6.75 6.80 6.77 6.80

M&T Bank Corp 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 6.83 6.80 6.89 6.90 6.97

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, M&T Bank Corp'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)
=2.21/246.819*246.819
=2.210

Current CPI (Sep. 2017) = 246.819.

M&T Bank Corp Quarterly Data

per share eps CPI Adj_EPS
200712 0.600 210.036 0.705
200803 1.820 213.528 2.104
200806 1.440 218.815 1.624
200809 0.820 218.783 0.925
200812 0.920 210.228 1.080
200903 0.490 212.709 0.569
200906 0.360 215.693 0.412
200909 0.970 215.969 1.109
200912 1.050 215.949 1.200
201003 1.150 217.631 1.304
201006 1.460 217.965 1.653
201009 1.480 218.439 1.672
201012 1.590 219.179 1.791
201103 1.590 223.467 1.756
201106 2.420 225.722 2.646
201109 1.320 226.889 1.436
201112 1.030 225.672 1.127
201203 1.500 229.392 1.614
201206 1.710 229.478 1.839
201209 2.170 231.407 2.315
201212 2.170 229.601 2.333
201303 1.980 232.773 2.099
201306 2.550 233.504 2.695
201309 2.110 234.149 2.224
201312 1.560 233.049 1.652
201403 1.610 236.293 1.682
201406 1.980 238.343 2.050
201409 1.910 238.031 1.981
201412 1.920 234.812 2.018
201503 1.650 236.119 1.725
201506 1.980 238.638 2.048
201509 1.930 237.945 2.002
201512 1.620 236.525 1.691
201603 1.730 238.132 1.793
201606 1.980 241.018 2.028
201609 2.100 241.428 2.147
201612 1.980 241.432 2.024
201703 2.120 243.801 2.146
201706 2.350 244.955 2.368
201709 2.210 246.819 2.210

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.

M&T Bank Corp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=177.78/6.97
=25.51

* 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 M&T Bank Corp was 25.69. The lowest was 5.64. And the median was 16.12.


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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