i sent nasdaq an email asking for clarification of the calculation. i will advise if they send a response.
http://www.nasdaq-amex.com/asp/offsite_mom.asp?content=http://www.nasd.com/mr3h.html
on the above link on your site, there is a chart with the following data:
July 1999
Total
(Millions) Average
(Millions)
Assets $2,909,246 $600.0
Revenues $1,507,438 $310.9
Equity $804,670 $165.9
Net Income $33,262 $6.9
Shares Outstanding 102,707 21.0
Public Float (Shares) 70,092 14.3
Market Value $2,973,263 $606.9
Total Average
Number of Companies 4,849 N/A
Number of Issues 4,899 N/A
Number of Market Makers N/A 11.1
Average Share Price N/A $28.95
Price/Earnings Ratio** N/A 145.3
* Domestic and foreign common stocks, ADRs, and shares of beneficial interest only.
** Domestic common stocks and shares of beneficial interest only. Total market value divided by earnings.
please explain to me if possible the price/earnings ratio calculation. i note the footnote number two attached. without adjusting the data for that footnote, it seems one would get a p/e of 88.1 by the following calculation from the data:
21,000,000 average shares outstanding * $28.95 average price / $6,900,000.00 average earnings. can you give the data that is boosting the calculation to the 145.3 shown? foreign shares and "beneficial interest only" make that much difference? And if you could explain the "beneficial interest only" part of the footnote I would also appreciate this. I am curious if this is getting at the fully diluted shares issue and that employee stock options vested are not included in the average shares outstanding but are used in your calculation or what other factors are involved.
thank you in advance for your time and help.
|
