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BSE changes methodology for calculating P/E ratio

Our Bureau

Mumbai , Dec. 15

BSE has decided to change the methodology for calculating the price-earnings (P/E) ratio of BSE indices.

In a statement, BSE said from December 20 onwards, the exchange would be calculating the price-earnings ratio, taking into consideration "rolling four quarterly earnings," instead of the current practice of sourcing earnings from the annual results.

The statement said the revised method would help to portray the current earnings trend in a timely and effective manner by taking into consideration the latest available financials of the company.

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