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Bank of America (WBO:BOAC) E10 : €2.52 (As of Sep. 2024)


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What is Bank of America 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 America's adjusted earnings per share data for the three months ended in Sep. 2024 was €0.730. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €2.52 for the trailing ten years ended in Sep. 2024.

During the past 12 months, Bank of America's average E10 Growth Rate was 11.10% per year. During the past 3 years, the average E10 Growth Rate was 22.10% per year. During the past 5 years, the average E10 Growth Rate was 25.50% per year. During the past 10 years, the average E10 Growth Rate was 5.50% 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 America was 30.90% per year. The lowest was -26.30% per year. And the median was 1.60% per year.

As of today (2024-12-13), Bank of America's current stock price is €44.05. Bank of America's E10 for the quarter that ended in Sep. 2024 was €2.52. Bank of America's Shiller PE Ratio of today is 17.48.

During the past 13 years, the highest Shiller PE Ratio of Bank of America was 52.77. The lowest was 9.77. And the median was 20.72.


Bank of America E10 Historical Data

The historical data trend for Bank of America'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 America E10 Chart

Bank of America Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.02 1.12 1.63 2.10 2.29

Bank of America Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 2.42 2.29 2.43 2.54 2.52

Competitive Comparison of Bank of America's E10

For the Banks - Diversified subindustry, Bank of America'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 America's Shiller PE Ratio Distribution in the Banks Industry

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

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



Bank of America 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 America's adjusted earnings per share data for the three months ended in Sep. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=0.73/133.0289*133.0289
=0.730

Current CPI (Sep. 2024) = 133.0289.

Bank of America Quarterly Data

per share eps CPI Adj_EPS
201412 0.203 99.070 0.273
201503 0.231 99.621 0.308
201506 0.383 100.684 0.506
201509 0.339 100.392 0.449
201512 0.257 99.792 0.343
201603 0.251 100.470 0.332
201606 0.365 101.688 0.477
201609 0.365 101.861 0.477
201612 0.379 101.863 0.495
201703 0.421 102.862 0.544
201706 0.392 103.349 0.505
201709 0.386 104.136 0.493
201712 0.169 104.011 0.216
201803 0.503 105.290 0.636
201806 0.539 106.317 0.674
201809 0.566 106.507 0.707
201812 0.615 105.998 0.772
201903 0.620 107.251 0.769
201906 0.655 108.070 0.806
201909 0.508 108.329 0.624
201912 0.666 108.420 0.817
202003 0.362 108.902 0.442
202006 0.329 108.767 0.402
202009 0.433 109.815 0.525
202012 0.485 109.897 0.587
202103 0.722 111.754 0.859
202106 0.855 114.631 0.992
202109 0.723 115.734 0.831
202112 0.726 117.630 0.821
202203 0.726 121.301 0.796
202206 0.691 125.017 0.735
202209 0.818 125.227 0.869
202212 0.802 125.222 0.852
202303 0.878 127.348 0.917
202306 0.812 128.729 0.839
202309 0.843 129.860 0.864
202312 0.321 129.419 0.330
202403 0.699 131.776 0.706
202406 0.771 132.554 0.774
202409 0.730 133.029 0.730

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


Bank of America  (WBO:BOAC) 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 America's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=44.05/2.52
=17.48

* 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 America was 52.77. The lowest was 9.77. And the median was 20.72.


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 America E10 Related Terms

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


Bank of America Business Description

Address
100 North Tryon Street, Bank of America Corporate Center, Charlotte, NC, USA, 28255
Bank of America is one of the largest financial institutions in the United States, with more than $3.0 trillion in assets. It is organized into four major segments: consumer banking, global wealth and investment management, global banking, and global markets. Bank of America's consumer-facing lines of business include its network of branches and deposit-gathering operations, retail lending products, credit and debit cards, and small-business services. The company's Merrill Lynch operations provide brokerage and wealth-management services, as does its private bank. Wholesale lines of business include investment banking, corporate and commercial real estate lending, and capital markets operations. Bank of America has operations in several countries but is primarily US-focused.

Bank of America Headlines