Paul: re numbers on NWS.
This is an ADR and IMO the chances of any consistency are nill. The following are some of the variables:
1 ADR vs total company. Some services just report on the entire company and vl reports only on that part specific to ADR's
2 US dollars vs Australian dollars. Value line reports in us dollars, converting at .75.
3 US-GAPP vs A-GAAP, the accounting rules are apparently different.
4 New debt issued - vl has suspended rating since NWS issued limited voting perferred. Impact unknown on #shares.
5 Non-recurring items - unknown, but could very well impact the computations - vl backs out and excludes non-recurring, which, IMO, most other reporting services do not.
6 As someone else mentioned, there can be errors in the reporting of the eps and the number of shares are not as constant as most people think
7 Some services report trailing (last 12 months) and other future (estimated next 12 months). These can easily get mixed up when there is no way to check them on an ADR.
Since they are a ADR, their SEC filings are non-existent, so you cant check the source. I own NVTSY (Novartis) and BTI (BAT Industries) ADRs and have the same problems trying to get data - it just doesn't exist in the usual timely manner. And if it does, you still have to figure out what basis it's on.
Based on my experience, I'd trust value line. On the report dated may 30, 1997, with price at 18 trailing pe of 20.7 and their own pe (prior 6 mo + future 6 mo) of 17.6. Book value per adr for 1996 is 7.53 and estimated 1997 is 9.70.
Vl also indicates that NWS is completing a great year and next year will make for tough comparisons. Long term as satellite-televison kicks in they are positive on the stock, with worthwile appreciation potential, although risky - conservative investors should look elsewhere.
Using the same source (value line) on the same basis (see 1-5 above), NWS does have a low, but not the lowest pe. Using latest prices, in pe sequence for industry nwspaper:
Tic Company Trailing PE
1) MEGA Media General 16.93
2) PTZ Pulitzer Publishing 17.26
3) NWS News Corp 18.88
4) WPO Washington Post 19.30
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NWS has the lowest safety rating (4) and the lowest 3-5 year estimate eps growth (6.5), according to value line estimates.
All data is from Value Line CD i just received and installed on Friday.
My approach to these kinds of stocks is that I have to really like it to put up with this nonsense - there are too many other stocks that dont have this problem. I wont buy based on numbers when I cant check those numbers. I'll pass on this one.
My opinion only.
Good investing,
jim garrison
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