Market Axess PE Average | The Investment Quadrant by The Fifth Person

Questions › Category: Investor Psychology › Market Axess PE Average

juliana lim asked 9 months ago

Hi Victor,
I couldn’t get the same PE average of 58.7 as yours.
The dividends for each year was 1.32, 1.68, 2.04, 2.40 per year on their website and my calculation of avg PE is >180 or so. May I know where gone wrong? https://investor.marketaxess.com/stock-information/dividends-splits

Also, you have earnings per share (TTM) 6.37, I can’t get this figure as well.

1 Answers

0 Vote Up Vote Down

Victor Chng answered 9 months ago

Hi Juliana,

When calculating the PE ratio, the formula should be price divided by earnings. The dividend is not part PE ratio.

TTM means trailing twelve months which means I take the latest four quarters result. For instance, Market Axess reported its 1Q2022 result recently; hence the TTM will be the sum of 2Q2021, 3Q2021, 4Q2021 and 1Q2022.