I would like to know what market price to use to calculate the PE ratio. is it the current price at the time of submission or historical price at end of fiscal year.
Other Accountancy Qualifications
Topic 8 - PE ratio and EPS
should be historical price..
Price at end of fiscal year 2010 / Earning at end of fiscal year 2010
Price at end of fiscal year 2011 / Earning at end of fiscal year 2011
Price at end of fiscal year 2012 / Earning at end of fiscal year 2012
Thanks for the reply @derricklau
This is exactly what I did but my marker gave the following comment:
"You also compare EPS in absolute terms"
Not quite sure what this means.
Any ideas??
Sign into reply to this topic.