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Bank of Montreal (TSX:BMO) E10 : C$10.69 (As of Jan. 2025)


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What is Bank of Montreal 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.

Bank of Montreal's adjusted earnings per share data for the three months ended in Jan. 2025 was C$2.830. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is C$10.69 for the trailing ten years ended in Jan. 2025.

During the past 12 months, Bank of Montreal's average E10 Growth Rate was 4.30% per year. During the past 3 years, the average E10 Growth Rate was 8.40% per year. During the past 5 years, the average E10 Growth Rate was 9.40% per year. During the past 10 years, the average E10 Growth Rate was 8.10% 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.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Bank of Montreal was 12.50% per year. The lowest was 3.20% per year. And the median was 6.40% per year.

As of today (2025-03-19), Bank of Montreal's current stock price is C$139.59. Bank of Montreal's E10 for the quarter that ended in Jan. 2025 was C$10.69. Bank of Montreal's Shiller PE Ratio of today is 13.06.

During the past 13 years, the highest Shiller PE Ratio of Bank of Montreal was 17.91. The lowest was 8.54. And the median was 14.11.


Bank of Montreal E10 Historical Data

The historical data trend for Bank of Montreal'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.

Bank of Montreal E10 Chart

Bank of Montreal Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.42 8.36 10.21 10.30 10.64

Bank of Montreal Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 10.25 10.43 10.56 10.64 10.69

Competitive Comparison of Bank of Montreal's E10

For the Banks - Diversified subindustry, Bank of Montreal'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.


Bank of Montreal's Shiller PE Ratio Distribution in the Banks Industry

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

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



Bank of Montreal 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, Bank of Montreal's adjusted earnings per share data for the three months ended in Jan. 2025 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jan. 2025 (Change)*Current CPI (Jan. 2025)
=2.83/127.3637*127.3637
=2.830

Current CPI (Jan. 2025) = 127.3637.

Bank of Montreal Quarterly Data

per share eps CPI Adj_EPS
201504 1.490 99.710 1.903
201507 1.800 100.579 2.279
201510 1.830 100.500 2.319
201601 1.580 100.184 2.009
201604 1.450 101.370 1.822
201607 1.860 101.844 2.326
201610 2.020 102.002 2.522
201701 2.220 102.318 2.763
201704 1.840 103.029 2.275
201707 2.050 103.029 2.534
201710 1.810 103.424 2.229
201801 1.430 104.056 1.750
201804 1.860 105.320 2.249
201807 2.310 106.110 2.773
201810 2.580 105.952 3.101
201901 2.280 105.557 2.751
201904 2.260 107.453 2.679
201907 2.340 108.243 2.753
201910 1.780 107.927 2.101
202001 2.370 108.085 2.793
202004 1.000 107.216 1.188
202007 1.810 108.401 2.127
202010 2.370 108.638 2.779
202101 3.030 109.192 3.534
202104 1.910 110.851 2.195
202107 3.410 112.431 3.863
202110 3.230 113.695 3.618
202201 4.430 114.801 4.915
202204 7.130 118.357 7.673
202207 1.950 120.964 2.053
202210 6.510 121.517 6.823
202301 0.140 121.596 0.147
202304 1.260 123.571 1.299
202307 2.120 124.914 2.162
202310 2.200 125.310 2.236
202401 1.730 125.072 1.762
202404 2.360 126.890 2.369
202407 2.480 128.075 2.466
202410 2.940 127.838 2.929
202501 2.830 127.364 2.830

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


Bank of Montreal  (TSX:BMO) 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.

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

Shiller PE Ratio=Share Price/E10
=139.59/10.69
=13.06

* 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 Bank of Montreal was 17.91. The lowest was 8.54. And the median was 14.11.


Be Aware

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


Bank of Montreal E10 Related Terms

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


Bank of Montreal Business Description

Address
129 rue Saint Jacques, Montreal, QC, CAN, H2Y 1L6
Bank of Montreal is a diversified financial-services provider based in North America, operating four business segments: Canadian personal and commercial banking, US P&C banking, wealth management, and capital markets. The bank's operations are primarily in Canada, with a material portion also in the US.
Executives
William Darryl White Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
David Robert Casper Senior Officer
Nadim Hirji Senior Officer
Linda Susan Huber Director
Martin Stewart Eichenbaum Director
Mona Elizabeth Malone Senior Officer
Joanna Michelle Rotenberg Senior Officer
Cameron Mcaskile Fowler Senior Officer
Patrick Cronin Senior Officer
Ron Farmer Director
George Cope Director
Don Matthew Wilson Iii Director
Richard D. Rudderham Senior Officer
Philip Orsino Director
Simon Adrian Fish Senior Officer