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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 2 years 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 2 years 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 2 years 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 2 years 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 2 years ago

Hi JR,

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

Jieren Zheng replied 2 years 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 2 years ago

ic thanks for sharing :)

0 Vote Up Vote Down
Victor Chng answered 2 years ago

Hi Hao Ting,

Yes you can use the exchange rate in macrotrends.