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ABSA Bank Kenya (NAI:ABSA) E10 : KES2.13 (As of Sep. 2024)


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What is ABSA Bank Kenya 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.

ABSA Bank Kenya's adjusted earnings per share data for the three months ended in Sep. 2024 was KES0.740. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is KES2.13 for the trailing ten years ended in Sep. 2024.

During the past 12 months, ABSA Bank Kenya's average E10 Growth Rate was 2.90% 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.

As of today (2025-03-04), ABSA Bank Kenya's current stock price is KES19.05. ABSA Bank Kenya's E10 for the quarter that ended in Sep. 2024 was KES2.13. ABSA Bank Kenya's Shiller PE Ratio of today is 8.94.

During the past 13 years, the highest Shiller PE Ratio of ABSA Bank Kenya was 8.97. The lowest was 4.35. And the median was 6.11.


ABSA Bank Kenya E10 Historical Data

The historical data trend for ABSA Bank Kenya'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.

ABSA Bank Kenya E10 Chart

ABSA Bank Kenya 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 - - - 1.96 1.96

ABSA Bank Kenya 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 2.07 1.96 2.05 2.10 2.13

Competitive Comparison of ABSA Bank Kenya's E10

For the Banks - Regional subindustry, ABSA Bank Kenya'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.


ABSA Bank Kenya's Shiller PE Ratio Distribution in the Banks Industry

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

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



ABSA Bank Kenya 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, ABSA Bank Kenya'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)
=0.74/133.0289*133.0289
=0.740

Current CPI (Sep. 2024) = 133.0289.

ABSA Bank Kenya Quarterly Data

per share eps CPI Adj_EPS
201412 0.390 99.070 0.524
201503 0.390 99.621 0.521
201506 0.449 100.684 0.593
201509 0.340 100.392 0.451
201512 0.368 99.792 0.491
201603 0.400 100.470 0.530
201606 0.350 101.688 0.458
201609 0.363 101.861 0.474
201612 0.240 101.863 0.313
201703 0.320 102.862 0.414
201706 0.330 103.349 0.425
201709 0.329 104.136 0.420
201712 0.294 104.011 0.376
201803 0.350 105.290 0.442
201806 0.340 106.317 0.425
201809 0.308 106.507 0.385
201812 0.365 105.998 0.458
201903 0.350 107.251 0.434
201906 0.360 108.070 0.443
201909 0.310 108.329 0.381
201912 0.349 108.420 0.428
202003 0.360 108.902 0.440
202006 -0.252 108.767 -0.308
202009 0.240 109.815 0.291
202012 0.412 109.897 0.499
202103 0.450 111.754 0.536
202106 0.580 114.631 0.673
202109 0.490 115.734 0.563
202112 0.480 117.630 0.543
202203 0.540 121.301 0.592
202206 0.615 125.017 0.654
202209 0.814 125.227 0.865
202212 0.713 125.222 0.757
202303 0.820 127.348 0.857
202306 0.709 128.729 0.733
202309 0.736 129.860 0.754
202312 0.740 129.419 0.761
202403 1.090 131.776 1.100
202406 0.877 132.554 0.880
202409 0.740 133.029 0.740

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


ABSA Bank Kenya  (NAI:ABSA) 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.

ABSA Bank Kenya's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=19.05/2.13
=8.94

* 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 ABSA Bank Kenya was 8.97. The lowest was 4.35. And the median was 6.11.


Be Aware

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


ABSA Bank Kenya E10 Related Terms

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


ABSA Bank Kenya Business Description

Traded in Other Exchanges
N/A
Address
Waiyaki Way, P.O. Box 30120, Nairobi, KEN, 00100
ABSA Bank Kenya PLC is a diversified financial services company offering clients a range of retail, business, corporate and investment, and wealth management solutions. The company's operating segment includes Consumer banking and Corporate banking. It generates maximum revenue from the Consumer Banking segment. The Consumer Banking segment incorporates private customer current accounts, savings, deposits, credit and debit cards, consumer loans, and mortgages. Its Corporate Banking segment includes the business model that centers on delivering specialist investment banking, financing, risk management, and advisory solutions across asset classes to corporates, financial institutions, and government clients.

ABSA Bank Kenya Headlines

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