The Reference tool enables you to access and consider year end (averaged month ends) P/Es, for periods of 1 up to 10 years inclusive. Two methods of calculation are provided, ‘Standard’ (unmodified) and ‘Smoothed’ (extremes eliminated - highest /lowest).

For periods up to and including 3 years only the Standard method is available. For 4 or more years both Standard and Smoothed are offered. Upon selecting period and method the resulting Minimum, Average and Maximum P/E values are displayed.

This analysis combined with other considered current and historical fundamental results (e.g. ROE, Sales per share, Financial Health, Earnings and Dividend stability, etc.) can influence the benchmark periods you use in the Value Calculator.

You will note that in the headline of the Value Calculator both the subject company’s last year end date and the number of remaining calculation months are provided.

The Value Calculator is an amalgam of P/Es and share price values. It is constructed in three sections; current, contrast and forecast. Each section contains three columns; Current, Benchmark 1 and Benchmark 2.

The Benchmark selections are as per the Reference tool with the addition of current P/Es for the subject company, market and industry. They have two methods of calculation provided, ‘Standard’ and ‘Smoothed’, for periods of 1 up to 10 years. Simply using the drop-downs to select desired period and method will result in altered outcomes.

Consider the outcomes of your preferred selections to form a view as to the fair (reasonable) value of the current share price.

The Price Earnings Reference Tool allows you to:

• Drill down and view any specific year's minimum, maximum and average PE for the subject company for up to the past 10 years, and
• Eliminate the highest and lowest of the selected range by selecting 'Smoothed'.

Use the drop-downs to select desired period and method. This enables you to maximise the benefits of the Value Calculator.