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Arion banki hf (OSTO:ARION SDB) E10 : kr1.21 (As of Dec. 2024)


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What is Arion banki hf 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.

Arion banki hf's adjusted earnings per share data for the fiscal year that ended in Dec. 2024 was kr1.440. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is kr1.21 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Arion banki hf's average E10 Growth Rate was 1.80% 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 (2025-03-03), Arion banki hf's current stock price is kr 13.50. Arion banki hf's E10 for the fiscal year that ended in Dec. 2024 was kr1.21. Arion banki hf's Shiller PE Ratio of today is 11.16.

During the past 11 years, the highest Shiller PE Ratio of Arion banki hf was 11.69. The lowest was 9.59. And the median was 10.65.


Arion banki hf E10 Historical Data

The historical data trend for Arion banki hf'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.

Arion banki hf E10 Chart

Arion banki hf Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 1.07 1.21

Arion banki hf Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 1.07 - - - 1.21

Competitive Comparison of Arion banki hf's E10

For the Banks - Regional subindustry, Arion banki hf'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.


Arion banki hf's Shiller PE Ratio Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Arion banki hf's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Arion banki hf's Shiller PE Ratio falls into.



Arion banki hf 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, Arion banki hf's adjusted earnings per share data for the fiscal year that ended in Dec. 2024 was:

Adj_EPS=Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=1.44/148.8708*148.8708
=1.440

Current CPI (Dec. 2024) = 148.8708.

Arion banki hf Annual Data

per_share_eps CPI Adj_EPS
201512 1.731 100.657 2.560
201612 0.872 102.562 1.266
201712 0.602 104.481 0.858
201812 0.307 108.388 0.422
201912 0.049 110.588 0.066
202012 0.576 114.542 0.749
202112 1.348 120.398 1.667
202212 1.310 131.901 1.479
202312 1.344 142.125 1.408
202412 1.440 148.871 1.440

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


Arion banki hf  (OSTO:ARION SDB) 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.

Arion banki hf's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=13.50/1.21
=11.16

* 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 11 years, the highest Shiller P/E Ratio of Arion banki hf was 11.69. The lowest was 9.59. And the median was 10.65.


Be Aware

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


Arion banki hf E10 Related Terms

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


Arion banki hf Business Description

Traded in Other Exchanges
Address
Borgartun 19, Reykjavik, ISL, 105
Arion banki hf is a universal relationship bank operating in the Icelandic financial market. Its operating segments are Markets & Stefnir, Corporate & Investment Banking, Retail Banking, Treasury, Other subsidiaries, and Supporting units. The Corporate & Investment Banking segment of the company generates the majority of the revenue and is engaged in providing comprehensive financial services to companies and investors both in Iceland and internationally.

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