What to do when price is in CAD$ and EPS in US$

**sonyericsson** Sat Dec 31, 2005 12:28 pm

What to do when price is in CAD$ and EPS in US$
Hello Everybody,

I am analysing a Canadian company. The company is listed on Toronto Stock exchange, hence price is in CAD$. However the company publishes its financials in the US$ based on Canadian GAAP.

I have stock price in CAD$ and EPS in the US$ for last five years. How do I get P/E?

Thanks,

SE

**blast_investor** Tue Jan 03, 2006 12:59 pm

Re: What to do when price is in CAD$ and EPS in US$
You can convert US dollar and Canadian dollar in math easily.

just search Google and there is plenty of web site that offer real-time currency conversion quote.

sonyericsson wrote: Hello Everybody,

I am analysing a Canadian company. The company is listed on Toronto Stock exchange, hence price is in CAD$. However the company publishes its financials in the US$ based on Canadian GAAP.

I have stock price in CAD$ and EPS in the US$ for last five years. How do I get P/E?

Thanks,

SE

**sonyericsson** Tue Jan 03, 2006 5:22 pm

Thanks blast,

But I wanted to know whether I should use exchange rate of 31 Dec for those 5 years or I have to use average exchange rate for each year.

SE

**blast_investor** Tue Jan 03, 2006 7:12 pm

The accounting rule actually is to use each quarter end date conversion rate for earning.

Therefore, average exchange rate is more accurate.

sonyericsson wrote: Thanks blast,

But I wanted to know whether I should use exchange rate of 31 Dec for those 5 years or I have to use average exchange rate for each year.

SE