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Banco Santander SA  (NYSE:SAN) E10: $0.89 (As of Jun. 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.

Banco Santander SA's adjusted earnings per share data for the three months ended in Jun. 2017 was $0.135. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $0.89 for the trailing ten years ended in Jun. 2017.

As of today, Banco Santander SA's current stock price is $6.56. Banco Santander SA's E10 for the quarter that ended in Jun. 2017 was $0.89. Banco Santander SA's Shiller PE Ratio of today is 7.37.

During the past 13 years, the highest Shiller PE Ratio of Banco Santander SA was 17.05. The lowest was 3.92. And the median was 7.27.


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.

Banco Santander SA 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 1.35 1.37 1.13 0.95 0.84

Banco Santander SA Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 0.99 0.93 0.84 0.84 0.89

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, Banco Santander SA's adjusted earnings per share data for the three months ended in Jun. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jun. 2017 (Change)*Current CPI (Jun. 2017)
=0.134831460674/244.955*244.955
=0.135

Current CPI (Jun. 2017) = 244.955.

Banco Santander SA Quarterly Data

per share eps CPI Adj_EPS
200709 0.460 208.490 0.541
200712 0.543 210.036 0.633
200803 0.477 213.528 0.547
200806 0.588 218.815 0.658
200809 0.440 218.783 0.493
200812 0.246 210.228 0.287
200903 0.321 212.709 0.370
200906 0.396 215.693 0.450
200909 0.270 215.969 0.306
200912 0.366 215.949 0.415
201003 0.336 217.631 0.379
201006 0.319 217.965 0.359
201009 0.263 218.439 0.295
201012 0.316 219.179 0.353
201103 0.330 223.467 0.361
201106 0.223 225.722 0.242
201109 0.275 226.889 0.297
201112 0.000 225.672 0.000
201203 0.225 229.392 0.240
201206 0.013 229.478 0.013
201209 0.129 231.407 0.136
201212 0.052 229.601 0.056
201303 0.149 232.773 0.157
201306 0.132 233.504 0.138
201309 0.127 234.149 0.133
201312 0.099 233.049 0.104
201403 0.152 236.293 0.158
201406 0.163 238.343 0.168
201409 0.168 238.031 0.172
201412 0.136 234.812 0.141
201503 0.130 236.119 0.135
201506 0.202 238.638 0.207
201509 0.123 237.945 0.127
201512 0.109 236.525 0.113
201603 0.122 238.132 0.126
201606 0.090 241.018 0.091
201609 0.123 241.428 0.125
201612 0.110 241.432 0.111
201703 0.128 243.801 0.129
201706 0.135 244.955 0.135

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.

Banco Santander SA's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=6.56/0.89
=7.37

* 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 Banco Santander SA was 17.05. The lowest was 3.92. And the median was 7.27.


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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