Ask Colin

Why are the PE and Dividend Yield figures in Shares Magazine so different to those in the Australian Financial Review?

Why are the PE and Dividend Yield figures in Shares Magazine so different to those in the Australian Financial Review?

The difference in Dividend Yields seems to be just that they are calculated on different days. The Australian Financial Review (AFR) data is calculated on Tuesdays. The Shares data is calculated as at the end of the month.

The two PE figures, both sourced from the ASX, by the way, are calculated in different ways.

The AFR data is calculated using profit AFTER abnormal items.

The Shares data is calculated using profit BEFORE abnormal items.

What is really interesting is that the concept of Abnormal Items has now vanished from accounting standards, yet the two data sources still show significant differences. I assume this is still a leftover from the old data not yet being entirely washed out of the system.

Alternatively, the ASX may be using Significant Items in place of Abnormal Items. If so, it could be very misleading, because the two are not the same

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