Hi,
Just want to ask, if I wanna calculate a company’s historical PE for 5 years back.. I know that I can take the figures in annual reports for the EPS.. but for the price, do i look for the closing prices which is on the company’s Financial Year End date?
For example, a company’s FYE is 30 June of every year. If i wanna calculate its historical PE for year 2010 to 2015, do I use the closing share price as at 30 June 2010 to 2015?
Hi Thomas,
You are right to take the closing price. When the company FYE end in June their financial report will mostly be out by August hence I will suggest you take the End of August price as a better reference.
So, it doesn’t matter which FYE..as long as I choose the closing price as at the date where the company announced its Annual Reports or 4th Quarter of Financial Results?
Hi Thomas,
Yes you are right
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