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Royal Bank of Canada (TSX:RY) E10 : C$10.39 (As of Jan. 2025)


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What is Royal Bank of Canada 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.

Royal Bank of Canada's adjusted earnings per share data for the three months ended in Jan. 2025 was C$3.540. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is C$10.39 for the trailing ten years ended in Jan. 2025.

During the past 12 months, Royal Bank of Canada's average E10 Growth Rate was 6.00% per year. During the past 3 years, the average E10 Growth Rate was 8.50% per year. During the past 5 years, the average E10 Growth Rate was 9.70% per year. During the past 10 years, the average E10 Growth Rate was 9.40% 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 Royal Bank of Canada was 13.30% per year. The lowest was 6.90% per year. And the median was 9.50% per year.

As of today (2025-03-16), Royal Bank of Canada's current stock price is C$160.00. Royal Bank of Canada's E10 for the quarter that ended in Jan. 2025 was C$10.39. Royal Bank of Canada's Shiller PE Ratio of today is 15.40.

During the past 13 years, the highest Shiller PE Ratio of Royal Bank of Canada was 19.87. The lowest was 11.29. And the median was 16.07.


Royal Bank of Canada E10 Historical Data

The historical data trend for Royal Bank of Canada'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.

Royal Bank of Canada E10 Chart

Royal Bank of Canada 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 7.10 8.06 9.12 9.74 10.29

Royal Bank of Canada 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 9.80 10.02 10.22 10.29 10.39

Competitive Comparison of Royal Bank of Canada's E10

For the Banks - Diversified subindustry, Royal Bank of Canada'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.


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

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

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



Royal Bank of Canada 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, Royal Bank of Canada'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)
=3.54/127.3637*127.3637
=3.540

Current CPI (Jan. 2025) = 127.3637.

Royal Bank of Canada Quarterly Data

per share eps CPI Adj_EPS
201504 1.680 99.710 2.146
201507 1.660 100.579 2.102
201510 1.740 100.500 2.205
201601 1.580 100.184 2.009
201604 1.660 101.370 2.086
201607 1.880 101.844 2.351
201610 1.650 102.002 2.060
201701 1.970 102.318 2.452
201704 1.850 103.029 2.287
201707 1.850 103.029 2.287
201710 1.880 103.424 2.315
201801 2.010 104.056 2.460
201804 2.060 105.320 2.491
201807 2.100 106.110 2.521
201810 2.200 105.952 2.645
201901 2.150 105.557 2.594
201904 2.200 107.453 2.608
201907 2.220 108.243 2.612
201910 2.180 107.927 2.573
202001 2.400 108.085 2.828
202004 1.000 107.216 1.188
202007 2.200 108.401 2.585
202010 2.230 108.638 2.614
202101 2.660 109.192 3.103
202104 2.760 110.851 3.171
202107 2.970 112.431 3.364
202110 2.670 113.695 2.991
202201 2.840 114.801 3.151
202204 2.960 118.357 3.185
202207 2.510 120.964 2.643
202210 2.750 121.517 2.882
202301 2.230 121.596 2.336
202304 2.600 123.571 2.680
202307 2.730 124.914 2.784
202310 2.770 125.310 2.815
202401 2.500 125.072 2.546
202404 2.740 126.890 2.750
202407 3.090 128.075 3.073
202410 2.910 127.838 2.899
202501 3.540 127.364 3.540

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


Royal Bank of Canada  (TSX:RY) 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.

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

Shiller PE Ratio=Share Price/E10
=160.00/10.39
=15.40

* 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 Royal Bank of Canada was 19.87. The lowest was 11.29. And the median was 16.07.


Be Aware

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


Royal Bank of Canada E10 Related Terms

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


Royal Bank of Canada Business Description

Address
1 Place Ville Marie, Corporate Secretary's Department, Montreal, QC, CAN, H3B 3A9
Royal Bank of Canada is one of the two largest banks in Canada, with over CAD 2 trillion in assets. It is a diversified financial services company, offering personal and commercial banking, wealth management, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada and has dominant market shares. RBC also has wealth and capital market businesses in the US, UK, and other countries. RBC is a top 15 investment bank globally.
Executives
David Ian Mckay Director, Senior Officer
Graeme Ashley Hepworth Senior Officer
Jennifer Kristine Publicover Senior Officer
Douglas Antony Guzman Senior Officer
Erica Lesley Nielsen Senior Officer
Neil Mclaughlin Senior Officer
Simon T.p. Ridgway Director, Senior Officer
Toos Noshir Daruvala Director
Nadine Genevieve Ahn Senior Officer
Bruce Washington Ross Senior Officer
Helena Gottschling Senior Officer
Rod Bolger Senior Officer
Alex Douglas Mcgregor Senior Officer
Michael Dobbins Senior Officer
Jeffery William Yabuki Director