Ask Colin

How can I tell which PE ratios from different sources are correct?

The detailed question was:

I am using currently Bell Potter as a broker (online) and am a bit curious about the P/E ratios how they are stated.  Have you got any ideas of a reliable site where I can compare these ratios to see if they are indeed correct?

Rarely does a month go past than I am asked this same question. I have addressed it in the article Ratio Analysis – Know What Yu are Looking At on the Educational Articles page on the Free Resources menu.

It is not a question of “correct”. There are many possible definitions. The question to ask is how does your source define its PE ratio and is it up to date?