I’ve done some in-depth analysis of my stocks using quarter earning reports. The data from 212 is very good and fortunately a much more simplified version of some of the extended financials sent out from companies. It’s a wonder where this information is coming from and who takes the time to break down the key figures and upload them.
Point being is that after using the data and calculating my own PE ratios from the earnings and normalised EPS figures, the PE ratio seems fairly accurate, with just a minor variation from my result. Take these for example:
LON:SONG - 19.51 versus 19.26 from 212, 39.49 from Google/ 28.05 from Yahoo
CMRE - 12.85 versus 12.85 from 212, nothing from Google/Yahoo
ROCK - 29.25 versus 31.33 from 212, 39.49 from Google, 39.43 from Yahoo
BBL - 21.54 versus 21.98 from Google, 212 is lacking the data from the last earnings so I can’t compare.
The online earning reports are pretty accurate to the earning reports, but I haven’t be able to figure out how they have calculated the P/E from the stated figures. If they are sourcing the information externally, then it may be that bits of information are excluded. The outstanding shares are given in value, not the number of shares, so this introduces an additional area of calculation and inaccuracy.
I’m surprised Google/Yahoo are so off. Their historical data is limited to stock prices, dividends etc, not PE ratios. This suggests it’s not something that is updated very well. This means you would have to go through each earnings report to find the information to backtrack the P/E ratio. Why do this, you may ask? It would mean back-tracking the historic earnings versus stock price, which is useful in estimating the future growth of the company by how much the market is willing to pay for the degree of growth.
Overall, I’m relieved that my PE calculation is so on par with 212. I can be a lot more comfortable with the data when reviewing a stock, which saves a lot of time in my research.
One feature that would be amazing, is if the data could be downloadable, or provided in a chart to compare the patterns to the stock price.