Not everything is as it appears to be. Relying on only one source of data is unreliable.
In doing some research I stumbled across something that every investor eventually finds. Many of the sources of financial information do not agree.
Here are some simple examples.
On Friday, Feb 23, 2018, Coca-Cola (KO) closed at $44.04 per share. Every site I checked seemed to agree. But that’s where the agreement ended.
What was the change from the previous closing price? Who reported what change?
| Who Reported | Reported Change | Reported Percent Change |
|---|---|---|
| Google Finance | +$0.51 | +1.17% |
| Yahoo Finance | +$0.52 | +1.19% |
| MSN Money | +$0.52 | +1.19% |
| AOL (“Powered by Yahoo”) | +$0.52 | +1.19% |
| CNN Money | +$0.52 | +1.19% |
| Reuters | +$0.52 | +1.19% |
The difference of one penny does not seem significant, but should you be trading significant numbers of shares, that might make a big difference.
A much wider difference shows up in calculated values.
Here is the P/E ratio value for Friday, Feb 23, 2018, for Coca-Cola (KO) at the close of trading as reported:
| Who Reported | Description | Reported Value |
|---|---|---|
| Google Finance | P/E ratio | 39.96 |
| Yahoo | PE Ratio (TTM) | 150.82 |
| MSN Money | P/E Ratio (EPS) | 42.37 (1.04) |
| AOL (“Powered by Yahoo”) | P/E | 150.82 |
| CNN Money | P/E Ratio (EPS) | 42.37 (1.04) |
| Reuters | P/E Ratio (TTM) | 39.49 |
P/E Ratio (TTM) means “trailing 12 months”, PE Ratio as calculated using the earnings over the previous 12 months.
P/E Ratio (EPS) (which shows the purported earnings per share in parenthesis) in this case means using estimates for 12 months: either estimates of the upcoming twelve months, or a mix of the trailing two quarters with the next two quarters.
Unfortunately, the reported EPS of 1.04 is likely an estimate for future EPS, as no source reports EPS currently 1.04 (per year).
Variance
The P/E Ratio ranges from 39.49 to 150.82. This is too large to accept. Even if we look only at those specified as TTM values, we still vary too widely. Therefore, it is impossible to reply on one source alone.
Bottom Line
Before making an investment decision based on web-based displayed information, I suggest it is prudent to check multiple sources.
What do you think? See Contact page how to send a comment.
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