Switch to:
Sandy Spring Bancorp Inc  (NAS:SASR) E10: $1.39 (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.

Sandy Spring Bancorp Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.620. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.39 for the trailing ten years ended in Sep. 2017.

As of today, Sandy Spring Bancorp Inc's current stock price is $39.00. Sandy Spring Bancorp Inc's E10 for the quarter that ended in Sep. 2017 was $1.39. Sandy Spring Bancorp Inc's Shiller PE Ratio of today is 28.06.

During the past 13 years, the highest Shiller PE Ratio of Sandy Spring Bancorp Inc was 32.44. The lowest was 3.85. And the median was 15.02.


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.

Sandy Spring Bancorp Inc 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 1.49 1.42 1.45 1.38 1.34

Sandy Spring Bancorp Inc 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 1.35 1.34 1.36 1.38 1.39

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, Sandy Spring Bancorp Inc'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)
=0.62/246.819*246.819
=0.620

Current CPI (Sep. 2017) = 246.819.

Sandy Spring Bancorp Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.510 210.036 0.599
200803 0.500 213.528 0.578
200806 0.340 218.815 0.384
200809 0.330 218.783 0.372
200812 -0.240 210.228 -0.282
200903 0.060 212.709 0.070
200906 -0.090 215.693 -0.103
200909 -0.900 215.969 -1.029
200912 0.030 215.949 0.034
201003 -0.040 217.631 -0.045
201006 0.210 217.965 0.238
201009 0.270 218.439 0.305
201012 0.290 219.179 0.327
201103 0.300 223.467 0.331
201106 0.340 225.722 0.372
201109 0.470 226.889 0.511
201112 0.300 225.672 0.328
201203 0.350 229.392 0.377
201206 0.300 229.478 0.323
201209 0.440 231.407 0.469
201212 0.390 229.601 0.419
201303 0.420 232.773 0.445
201306 0.490 233.504 0.518
201309 0.480 234.149 0.506
201312 0.380 233.049 0.402
201403 0.430 236.293 0.449
201406 0.280 238.343 0.290
201409 0.440 238.031 0.456
201412 0.360 234.812 0.378
201503 0.450 236.119 0.470
201506 0.420 238.638 0.434
201509 0.450 237.945 0.467
201512 0.520 236.525 0.543
201603 0.450 238.132 0.466
201606 0.440 241.018 0.451
201609 0.560 241.428 0.573
201612 0.550 241.432 0.562
201703 0.630 243.801 0.638
201706 0.610 244.955 0.615
201709 0.620 246.819 0.620

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.

Sandy Spring Bancorp Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=39.00/1.39
=28.06

* 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 Sandy Spring Bancorp Inc was 32.44. The lowest was 3.85. And the median was 15.02.


Be Aware

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


Related Terms


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK