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Both GSK and competitor AZN trading mainly on LSE. So it should not be an issue after all, right?
Should I translate AZN’s report using their given average exchange rate for ease of comparison?
Hi all,
I’m studying GSK for Topic 8 and is already knee deep into it, but I just realized that other competitors has it’s FS in mostly USD, while only GSK is stated in £.
While my mentor suggested to use the US translation provided by GSK, I noticed that the increase in average USD exchange rate skewed up the results. E.g: Increase in Revenue became decrease after translation.
Any advice on how to tackle this issue? Should I continue using the USD translation results or should I just use £ as per Annual report? If latter, how should I then compare it with the competitor? **Edit: I did use different currencies before this, but found it confusing when doing P/E & Dividend Yield. If one is based on LSE and another NYSE, won’t these ratios be somewhat not comparable?
Sorry if I repeated a question, I can’t seem to find any answers from the previous posts.