Hi MoneyAM,

how are the PE's worked out historical or propesctive?? A good example might be CCH international (cch). MoneyAM records it has a 2.77. This seems very low considering the latest results.
Cheers.

Most PEs supplied by financial providers are based on the last FY earnings aren't they?

Plus guess work. Have a look at IC's PE.

Projections = guess work, just like the charts.

I think the best thing to be done for P/Es is to work you own out form EPS and S/P and see if the return on you investment stands up against Bank rate etc. At least you have a comparison and whether it is acceptable. IE. P/E is 10 % and would take ten years at that rate to get your money back and original stake.

P/E 30 takes thirty years etc.. 3% P.A

I am a simpleton and use this when trying to may sense of present and prospective earnings.



Not being an accountant or too bloody lazy I have to rely on analysed fundamentals, but find there is often discrepancies between between analysts and one has to balance acceptance of this against hours of work.

Check this logic I am often stupid.

and of course moneyAM would want make sure the information they provide is correct (albeit provided to them from someone else). As part as my subscribtion I would want the info provided by MA to be as correct as possible. Many excellent parts to this service.