Hi, The P/E of Morgan Stanley (MS) shows up as 89.78 on finance sites. I don't understand how they got this number. Looking at the financial date, the net revenue of MS after taxes exceeded 2 billion YTD and the market cap is ~36B. So P/E should be close to 18. Can someone please explain how is the PE showing so high? thanks, Sam
Take trailing previous 4 quarters of EPS add them up, because MS had some negative quarters it comes out to 29 cents ish. Take the price per share and divide by that. You generally don't use 1 quarters earnings for P/E or else most P/Es would be thru the roof. So you add the last 4 quarters, and in this case MS had write offs, took a bath, etc. so had some negative quarters.