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Valuation for chinese companies in US exchanges

Questions › Category: Valuation Quadrant › Valuation for chinese companies in US exchanges
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Hao Ting Toong asked 11 months ago

When using excel to get the P/E graph for chinese companies listed in the US stock exchanges, must we convert the CNY EPS into USD?

2 Answers
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Victor Chng answered 11 months ago

Hi Hao Ting,
 
Yes you need to convert the EPS to USD in order to plot the PE chart. To get an accurate chart, you need to take the forex exchange rate during the individual years EPS.

Hao Ting Toong replied 11 months ago

Just to check, are the average exchange rates for each year in the table in the website below accurate to be used for converting cny to usd?
https://www.macrotrends.net/2575/us-dollar-yuan-exchange-rate-historical-chart

Jieren Zheng replied 11 months ago

I remember yahoo finance has this currency conversion with you being allowed to select dates but not sure if they still have it.

Victor Chng replied 11 months ago

Hi JR,

That is something new to me. Do you still remember how to do it?

Jieren Zheng replied 11 months ago

Hi Victor,

I don’t use it anymore, I switched to this website instead:
https://www.exchange-rates.org/Rate/HKD/SGD/7-13-2021

It is more cumbersome to use though, because you need to specify the pair and the date, M-D-YYYY.

Victor Chng replied 11 months ago

ic thanks for sharing :)

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Victor Chng answered 11 months ago

Hi Hao Ting,

Yes you can use the exchange rate in macrotrends.