1. Most Discussed
  2. Gainers & Losers

HELP!!......inconsistent data on market PER

  1. eddievanhalen

    1,200 Posts.

    I have a question regarding market avergae PER data........I developed a system (which I'm very happy with on backtested data) for determining market risk..........it requires average market PER figure.

    The source I used to back test the theory was a chart shown in Shares mag with the source listed as ASX..........other sources of info for this data in the past have been the tables in the back of Shares (in a monthly basis) and also in the Fin Review weekly whch no longer appears to be published.....may be due to new indice set up.

    There has always been a bit of variation between the sources but what I've seen in the last week or so is ridiculous.

    1. According to the tables in Shares the market PER between early this year and May has gone from 22 to 25 (while the market's been falling!!!)........this is possible in theory if smaller companies have been rising at the expense of blue chips and the figure is not a weighted average. Still seems odd as the figures generally tend to follow the market as a whole.

    2. Then I see the latest Shares Weekly figure (kindly emailed to me by pip1) which quotes the avg NBI PER of the market as 18!!!! Meaning if it is consistent with the above figure we have lost 7 points in a month.......we only lost 9 points in October 1987!! BTW............what does NBI mean???

    Anyone have any thoughts on this??

Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.


Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.