Historical P/E ratio's by sector

Discussion in 'General Forum' started by Deckard, Dec 11, 2004.

  1. Does anyone know where historical sector P/E ratio's can be found ?

    Every now and then I see the Australian market historical P/E ratio chart in the newspaper but have not managed to find them on-line

  2. Hi Deckard
    When I look under Market Wrap in Commsec for a Coy profile (under News & Research) I can get the sector PE. Only place I know mate!
  3. The trouble with historical P/E's is that they are a lagging statistic - not totally useless but almost.
  4. G'day Deckard,
    Don't know what you want the figures for and I doubt if anyone will have it for free, though I think Share Analysis might have it in their subscription service, though only for a relatively short historical period.

    As a suggestion go to Commsec /News & research/Financials for a few companies in the sector you want.

    There is a line called "Average annual P.E. ratio" and this will cover the last 10 years.
    If you multiply this by the year's EPS figure it will give you the average price for each of the last 10 years.
    With a bit of imagination you should be able to get a spreadsheet going that shows the average annual P.E. for each of the main companies in the sector, and their GEPS and subsequent growth in P.E. and the average price .

    The average price may come in handy to view the price growth against the GEPS.
  5. Thanks all

    I wanted to have a look at sector momentum and particular stocks within sectors. eg if sector P/E falls away relative to historical levels does the particular sector become the flavour of the month at the expense of those higher than historical levels and what sort of timeframes are involved ?

    I know P/E in isolation is pretty useless but I wanted to investigate anyway.

    The Fin Review occasionally has these sector charts and data when they review a company or group of companies.
  6. I buy stocks with an historical P/E of 12 to 15 with a few exceptions. I am wary of forecasts especially with companies such as NUF (fertilizers) which depend partly on the weather. I am very interested to know how much value others place on earnings forecasts.
    Regards, Ron.
  7. My investment in NUF at $8.40 less than two weeks ago was what I call a "sleep easy at night investment". Instos are now getting on board for more at $9.00+.
    If you look at the historical P/E of NUF, you could be excused for saying it was fully priced at $8.40 BUT looking forward, the stock is dirt cheap.
    This is where those that look at historical P/E's sometimes miss the boat.
    The Brazilian acquisition is EPS positive and NUF is truly a global player.
    I parked a fair amount of cash here for a short term (six month)gain of 20% looking to exit at $10.00. Six months will probably be pessimistic the way the stock is trading.
    NUF: a classic example of the historical P/E not telling the full story.
    GCL: Current P/E is over 50 but looking forward is less than 3!
    Mind you, if one's P/E "forecasts" are out, then one is in trouble!

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