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Calculating the P/E of 2800

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  1. #1

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    Jul 2015
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    Calculating the P/E of 2800

    This might be a bit of a tangent, but I didn't think this warranted a new thread because it might be a dumb question: How is 2800.hk P/E calculated? Is it the weighted average of the component companies?

    On Interactive Brokers and Reuters I see a P/E of 6 - 7 which seems absurdly low. It's not THAT property heavy.

    Looking at the full holdings on the traHK website, the weighted average P/E seems closer to 25. What am I missing?

    Last edited by tck; 26-01-2018 at 02:17 PM.

  2. #2

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    Jul 2015
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    I can see how negligible earnings companies could skew its individual P/E to the high side.

    That being said, with what I was looking at, the most expensive P/Es aren't egregious in magnitude or weight to skew my calculated PE of 25.


    I guess I believe that a PE of the 20s is more reasonable. I think I read somewhere that HSI's average is 16.

    I just can't understand under what methodology Reuters / Interactive brokers could even say PER as low as the 6 to 7 range.