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The new method would use quarterly earnings instead of sourcing earnings from the annual results and calculating the price-to-earnings (P/E) ratio, price-to-book value ratio (P/BV) and dividend yield (DY).
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, a CSE 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,” the CSE said.
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“This is a globally accepted methodology that is adopted by exchanges around the world.
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” It would be calculating the P/E and DY taking into consideration ‘rolling four quarterly earnings’ instead of the current practice of sourcing earnings from the annual results, it added.