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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bmillermn who wrote (1193)	5/12/2010 1:58:01 PM
From: bruwin	Respond to of 4719

You have a right to be curious bmillermn. That seems to be the wrong P/E value !! At the time of writing that post I used the P/E value I got from the BigChart's "Lower Indicator" which plots a P/E value for the stock. It seems that those values are not correct. Based on a TTM Basic EPS value of $(0.36+0.30+0.29+0.28)=$1.23c the P/E ratio for a price of $14.45c should be 14.45/1.23 = 11.7. An earlier post of mine that also referred to EBIX's P/E ratio would also be incorrect. It seems that when EBIX had a 3:1 split on the 5th.Jan.2010, BigCharts just divided the P/E ratio by 3, or whatever. If you look at the chart of EBIX a day before the split the P/E ratio is shown as 18.74. The P/E ratio on the day of the split is shown as about 6.5. Must be some form of "built-in" formula that doesn't properly cater for share splits. Just goes to show, one should always double-check someone else's numbers against the basic, correct calculation.