Wed, 28 Jul 2021 Today's Paper

CSE announces change in price multiples calculation methodology

6 May 2016 12:00 am - 0     - {{hitsCtrl.values.hits}}

A A A

The Colombo Stock Exchange (CSE) yesterday announced a revision in the methodology of calculating price multiples (P/E, P/BV and DY). 


The price‐earnings ratio (P/E ratio) and dividend yield ratio (DY) will be calculated taking into consideration ‘rolling four quarterly earnings’ instead of the current practice of sourcing earnings from the annual results of respective listed companies. 


The price to book value ratio (P/BV) will now be calculated based on the latest quarterly results instead of the annual results of the listed companies. The change was implemented with effect from May 3, 2016.   


Reporting the dates in terms of year‐end may vary based on the company and could therefore mean that the ratios such as P/E, P/BV and DY that are based on the annual data have the potential to be out‐of‐date.  


Commenting on the development, CSE Head of Research and New Products Nishantha Hewavithana stated, “The revised method would help to portray the current earnings trend in a timely and effective manner by taking into consideration the latest available financials of the company. With this revision, the multiples will offer a realistic reflection to users of this information, which would facilitate better decision-making.”  


The use of quarterly statistics is a globally accepted methodology that is practiced by the exchanges around the world and puts all listed companies on a comparable footing, which facilitates a fair and timely comparison.  

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

  Comments - 0

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment


“Medamulana Dynasty”: Four Sons and Three Grandsons of Don Alvin Rajapaksa

Basil Rohana Rajapaksa was sworn in as Finance minister in the Government of

Site survey near Akasa Chaitya: Is it the end of Yala?

The Yala National Park has been at the receiving end of human disturbances fr

Basil Rajapaksa’s catch 22 situation

Sri Lankan politics has been a good deal of family business. It was not even

“This govt. printed Rs. 880 billions”

This is the roadmap of Zimbabwe



See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.