May I know how to plot the Historical PE chart like the one shown in the valuation module video on PE ratio?
We collect the historical price data from Yahoo Finance than we input the earnings from each year into the price data to compute the PE manually.
But how do you plot the highest point, lowest point as well as the average point?
There is a few ways you can do it.
1.You can find the highest point and lowest point add them together and divided by 2
2.You can add all the PE together and divide it by the number of PE to get the average.
3. By looking at the graph you can roughly gauge the middle of the chart.