The Colombo Stock Exchange said they will be revising the methodology of calculating price multiples (Price Earnings (PE), Price to Book Value (P/BV) and Dividend Yield (DY) from yesterday (May 3).
Research and New Products Head Nishantha Hewavithana said that they will be calculating the P/E and D taking into consideration “Rolling four quarterly earnings”.
This will be implemented over the previous practice of sourcing earnings from annual results. He also stated that the new method will be calculating the Price to Book Value based on the quarterly results rather than the annual results.
The disclosure explained that the newly introduced method will portray the current earning trend in a more effective and timely manner as it will be taking into consideration the latest financial services available. It was mentioned that this method of calculating is used for calculation of price multiples around the world. (V.W)
www.dailynews.lk
Research and New Products Head Nishantha Hewavithana said that they will be calculating the P/E and D taking into consideration “Rolling four quarterly earnings”.
This will be implemented over the previous practice of sourcing earnings from annual results. He also stated that the new method will be calculating the Price to Book Value based on the quarterly results rather than the annual results.
The disclosure explained that the newly introduced method will portray the current earning trend in a more effective and timely manner as it will be taking into consideration the latest financial services available. It was mentioned that this method of calculating is used for calculation of price multiples around the world. (V.W)
www.dailynews.lk
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