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To: bill meehan who wrote (68014)	9/22/1999 11:18:00 AM
From: Cynic 2005	Respond to of 132070

Bill, "average net income" of 6.9 may not have counted some companies. After doing some math, I found out Average Earnings/co = $4.18 mil less than $6.9/co they indicated. Total Earnings (4849 companies) = 20,268.82 Only explanation I have is that they might have different divisors (no of companies) for the PE and ANI numbers.

To: bill meehan who wrote (68014)	9/22/1999 11:55:00 AM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

Bill, I am certainly not sure on this, but my guess is that the difference comes in what to do with all the cos. losing money. Do they make the PE ratio infinite or N/A, or do you assign some max pe to them? Or do you weed them out? My guess is that is where the confusion lies.

To: bill meehan who wrote (68014)	9/22/1999 12:51:00 PM
From: gnuman	Read Replies (1) \| Respond to of 132070

Bill, re: NASDAQ P/E From the charts, Market Value includes foreign common stocks and ADRs, while P/E does not. Anyway, I'm now confused. Isn't total income for the month of July only? Why calculate P/E from Market Value divided by one month's income? (I assume Market Value is total shares X average share price).

To: bill meehan who wrote (68014)	9/22/1999 1:30:00 PM
From: accountclosed	Read Replies (2) \| Respond to of 132070

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.