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Western Alliance Bancorp  (NYSE:WAL) E10: $-0.10 (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.

Western Alliance Bancorp's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.790. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.10 for the trailing ten years ended in Sep. 2017.

As of today, Western Alliance Bancorp's current stock price is $59.61. Western Alliance Bancorp's E10 for the quarter that ended in Sep. 2017 was $-0.10. Western Alliance Bancorp's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Western Alliance Bancorp was 62.08. The lowest was 0.00. And the median was 53.76.


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.

Western Alliance Bancorp 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 0.00 0.00 -0.33 -0.28 -0.21

Western Alliance Bancorp 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 -0.24 -0.21 -0.18 -0.14 -0.10

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, Western Alliance Bancorp'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)
=0.79/246.819*246.819
=0.790

Current CPI (Sep. 2017) = 246.819.

Western Alliance Bancorp Quarterly Data

per share eps CPI Adj_EPS
200712 0.080 210.036 0.094
200803 0.140 213.528 0.162
200806 0.080 218.815 0.090
200809 -2.840 218.783 -3.204
200812 -4.410 210.228 -5.178
200903 -2.330 212.709 -2.704
200906 -0.310 215.693 -0.355
200909 -0.370 215.969 -0.423
200912 -0.320 215.949 -0.366
201003 -0.030 217.631 -0.034
201006 -0.020 217.965 -0.023
201009 -0.010 218.439 -0.011
201012 -0.180 219.179 -0.203
201103 0.030 223.467 0.033
201106 0.050 225.722 0.055
201109 0.040 226.889 0.044
201112 0.070 225.672 0.077
201203 0.120 229.392 0.129
201206 0.150 229.478 0.161
201209 0.180 231.407 0.192
201212 0.380 229.601 0.408
201303 0.240 232.773 0.254
201306 0.390 233.504 0.412
201309 0.330 234.149 0.348
201312 0.360 233.049 0.381
201403 0.350 236.293 0.366
201406 0.400 238.343 0.414
201409 0.460 238.031 0.477
201412 0.450 234.812 0.473
201503 0.450 236.119 0.470
201506 0.440 238.638 0.455
201509 0.550 237.945 0.571
201512 0.580 236.525 0.605
201603 0.600 238.132 0.622
201606 0.600 241.018 0.614
201609 0.640 241.428 0.654
201612 0.660 241.432 0.675
201703 0.700 243.801 0.709
201706 0.760 244.955 0.766
201709 0.790 246.819 0.790

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.

Western Alliance Bancorp's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=59.61/-0.10
=

* 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 Western Alliance Bancorp was 62.08. The lowest was 0.00. And the median was 53.76.


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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