Ask Colin

Do you see anything wrong with using the Share Tables in Shares Magazine or the weekly CSV formatted data for PE ratio scans?

No, not at all.

I use Insight Trader charting software mostly. However, if I am doing a scan manually, I will use the Australian Financial Review (AFR). I think that this is the data that you can download from the AFR and Shares magazine CSY files. If you have spreadsheet software, you could sort on the PE ratio column to make your job much easier.

I only use the Shares magazine tables occasionally, because they are not as up to date as the AFR by the time they are published. However, for investment purposes, it probably does not matter much.

In your preamble you mentioned that there is some concern about the PE ratios in Shares magazine. That problem concerns the market average data, which includes loss making companies in the calculation. I believe this is wrong and prefer to use the data in the AFR table, which is what the professionals use. There is no equivalent concern about the PE ratio for an individual company.

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