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  1. #1
    Junior Member
    Join Date
    May 2007
    Location
    wellington
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    12

    Default graphs of pe ratio or dividend yield??

    I see a LOT of graphs of various stock's share prices, but nothing of pe ratio or dividend yield.

    Wouldn't it be useful to be able to compare various different company's return not just in terms of capital gain, but also the other factors to investing?

    Anyone know where I can find an easy way to compare that data?

  2. #2
    Guru
    Join Date
    Apr 2007
    Location
    Hamilton New Zealand.
    Posts
    4,251

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    Rimu

    Haven't seen any for NZ companies as a whole. Over the years some individual stocks have popped up in analysts reports presented this way in showing target pricing.

    From a fundamentalist point of view a PE Ratio of individual companies would be great for me (but probably not for the majority), as it would portray if the latest shareprice was of fair value or not.
    However something may be of fair value but one may have to wait years to reap the rewards...hence PE Ratios indicators are only good for long/very long term investors.

    An interesting example below shows PE ratios from S&P 500. At a quick glance look to have been fair/undervalued for over 2 years now if using the 15 year MA as a guide, yet some commentators are predicting a bear market to emerge. It may(or may not) happen but a PE 7 is not impossible.
    Somewhere, about 7 years ago I read that the DOW got to a historic low of PE 4 a big difference from the heady heights of PE 40+ in the early 2000's, from memory I think 14 is the average. No idea what the average is for S&P 500 but the 15 year moving average is interesting.
    The Average for ASX is 15, so with the Dow at 14 maybe the 15 year moving average for S&P 500 is historically too high...hence S&P 500 could still be overvalued.

    Some FA investors use TA on these sort of charts, from a TA point of view it seems the downtrend is ending and a trading pattern has been in effect for 1 1/2 years.

    http://www.stein-demuth.com/market/1pe_ratio.htm

    Last edited by Hoop; 16-10-2007 at 10:55 PM.

  3. #3
    Legend shasta's Avatar
    Join Date
    Sep 2004
    Location
    Wellington
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    5,914

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    Quote Originally Posted by rimu View Post
    I see a LOT of graphs of various stock's share prices, but nothing of pe ratio or dividend yield.

    Wouldn't it be useful to be able to compare various different company's return not just in terms of capital gain, but also the other factors to investing?

    Anyone know where I can find an easy way to compare that data?
    Rimu - Who do you use to trade?

    They should have a research section to find P/E ratios & Div Yields?

    Some better comparisons between companies without the need for graphs would be "Return on Equity" (ROE), & i personally like to calculate a companies "Enterprise Value" (EV), especially for resource companies, & worth out what i believe to be it's true "instrinsic value".

    Even the relatively simple ASB Securities research section has alot of what you would require!

    BTW - Check out the Wellington Sharetraders meeting thread on the NZX.

    If you're still in Wellington you should come along!

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