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Charles Schwab (WBO:SCHW) E10 : €2.57 (As of Dec. 2024)


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What is Charles Schwab 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.

Charles Schwab's adjusted earnings per share data for the three months ended in Dec. 2024 was €0.898. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €2.57 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Charles Schwab's average E10 Growth Rate was 9.90% per year. During the past 3 years, the average E10 Growth Rate was 13.60% per year. During the past 5 years, the average E10 Growth Rate was 15.30% per year. During the past 10 years, the average E10 Growth Rate was 11.70% 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 Charles Schwab was 28.10% per year. The lowest was 1.00% per year. And the median was 10.70% per year.

As of today (2025-03-23), Charles Schwab's current stock price is €72.47. Charles Schwab's E10 for the quarter that ended in Dec. 2024 was €2.57. Charles Schwab's Shiller PE Ratio of today is 28.20.

During the past 13 years, the highest Shiller PE Ratio of Charles Schwab was 57.70. The lowest was 20.71. And the median was 33.93.


Charles Schwab E10 Historical Data

The historical data trend for Charles Schwab'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.

Charles Schwab E10 Chart

Charles Schwab Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.22 1.62 2.04 2.24 2.57

Charles Schwab Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 2.24 2.32 2.39 2.33 2.57

Competitive Comparison of Charles Schwab's E10

For the Capital Markets subindustry, Charles Schwab'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.


Charles Schwab's Shiller PE Ratio Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Charles Schwab's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Charles Schwab's Shiller PE Ratio falls into.



Charles Schwab 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, Charles Schwab's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=0.898/133.1571*133.1571
=0.898

Current CPI (Dec. 2024) = 133.1571.

Charles Schwab Quarterly Data

per share eps CPI Adj_EPS
201503 0.203 99.621 0.271
201506 0.223 100.684 0.295
201509 0.249 100.392 0.330
201512 0.257 99.792 0.343
201603 0.260 100.470 0.345
201606 0.267 101.688 0.350
201609 0.312 101.861 0.408
201612 0.341 101.863 0.446
201703 0.365 102.862 0.472
201706 0.347 103.349 0.447
201709 0.352 104.136 0.450
201712 0.346 104.011 0.443
201803 0.446 105.290 0.564
201806 0.514 106.317 0.644
201809 0.557 106.507 0.696
201812 0.571 105.998 0.717
201903 0.611 107.251 0.759
201906 0.584 108.070 0.720
201909 0.636 108.329 0.782
201912 0.558 108.420 0.685
202003 0.525 108.902 0.642
202006 0.426 108.767 0.522
202009 0.408 109.815 0.495
202012 0.469 109.897 0.568
202103 0.613 111.754 0.730
202106 0.490 114.631 0.569
202109 0.629 115.734 0.724
202112 0.673 117.630 0.762
202203 0.608 121.301 0.667
202206 0.823 125.017 0.877
202209 1.000 125.227 1.063
202212 0.916 125.222 0.974
202303 0.775 127.348 0.810
202306 0.591 128.729 0.611
202309 0.525 129.860 0.538
202312 0.468 129.419 0.482
202403 0.626 131.776 0.633
202406 0.613 132.554 0.616
202409 0.640 133.029 0.641
202412 0.898 133.157 0.898

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


Charles Schwab  (WBO:SCHW) 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.

Charles Schwab's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=72.47/2.57
=28.20

* 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 Charles Schwab was 57.70. The lowest was 20.71. And the median was 33.93.


Be Aware

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


Charles Schwab E10 Related Terms

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


Charles Schwab Business Description

Address
3000 Schwab Way, Westlake, TX, USA, 76262
Charles Schwab operates in brokerage, wealth management, banking, and asset management. It runs a large network of brick-and-mortar brokerage branch offices and a well-established online investing website, and it has mobile trading capabilities. It also operates a bank and a proprietary asset-management business and offers services to independent investment advisors. Schwab is among the largest firms in the investment business, with over $10 trillion of client assets at the end of 2024. Nearly all of its revenue is from the United States.