Hi!! I'm calculating the P/E ratio of some International stocks and found a problem. Please look at this paticular stock:Thai Beverage Public Company Limited The p/e calculated by yahoo finance is 31.33. Similar results can be found at google finance and bloomberg which are all over 20. But if you look at income statement of this company, the net income is 25,226,000 thousands ~ 25 billions, and the market cap is 23.6 billion, which suggests p/e less than 1 (0.94)! And I believe the net income data is correct on yahoo finance, because I have cross validated it with compustats global data. Am I missing something here? Why the discrenpency? Thank you!
My guess is currency conversion as I highly doubt they make $25B in US dollars as even high margin software companies don't make that. Beverage companies are a low margin business except for energy drinks as those things is why Monster Energy was one of the best if not the best stock since 2000. If that isn't it I would have to look in depth later when on my computer. GL
Hi Superstar, thank you for your inputs! I think 25B in market cap is referring to local currency, and so is the data on their income statement.
Just to make it interesting, they are listed in Singapore Dollars and report in Thai Baht.... 25 bln baht = 700 mln USD Market Cap = 23.6 bln Singapore Dollar = 17 bln USD 17bln/700mln = 24 P/E
@lefthou Invest in a copy of an Aswath Damoradan valuation book. There is more to P/E ratios than meets the eye ! Both "price" and "earnings" can be defined in many ways. That's why you see different numbers everywhere. Different people use different calculation methodologies. It's not that simple !
I agree, actually I use ebit/ev and p/b for valuation, but met a lot of problems when it comes to global market because data becomes very dirty(a lot of missings) in compustats global. So coming here for some help
@lefthou Whatever happened to a Research Data Company out of Singapore called Investamatic? They provided all the stock and financial data to all the major brokerage houses in the ASEAN. I think Sun Hung Kai also sold data and was trying to buy them for the longest time.This was mostly in the 1990s.
I'm not familiar with this data provider just happened to have subscriptions to wrds so currently using compustats and crsp.