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How can I accurately determine the P/E ratio and forward P/E ratio of

This is a discussion on How can I accurately determine the P/E ratio and forward P/E ratio of within the Credit forums, part of the Main Category category; ETF's investing in foreign indexes? Also, which ETF's that invest in country specific indexes have the lowest P/...





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Old 09-15-2009, 12:32 AM   #1
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ETF's investing in foreign indexes? Also, which ETF's that invest in country specific indexes have the lowest P/E ratio's? Thanks!!!
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Old 09-15-2009, 12:32 AM   #2
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You would have to add up all the prices of shares times the number of shares for the proper weighting they recive in the index or etf. Then add up all the earnings per share times the number of shares. Then divide those two numbers.

The forward P/E you would have to estimate NOT only what those companies will make next year, but what the companies are added and what are dropped. This is not realy even possible assuming you had a good crystal ball to estimate what a company would make if you knew exactly which company to calculate it for.

That is a lot of work.
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Old 09-15-2009, 12:36 AM   #3
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Find a mutual fund that invests in that country
and check the fund´s website for the fund´s P/E.
It won´t be an exact answer but should be close
enough for investment purposes. This will only
give you the trailing P/E. Of course, check if
the fund´s top holdings are similar to the ETF´s
top holdings.

You´ll find South Korea and Brazil are the best
places to invest right now for low P/E.
Alex is offline   Reply With Quote

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