Show HN: Every site gives a different P/E ratio, so I open-sourced the math
The article discusses the inconsistencies in financial metrics reported by different websites, highlighting the need for transparency in calculation methods. The author introduces the FinanceToolkit, an open-source toolkit that provides transparent calculations for over 200 financial ratios and indicators. The toolkit aims to promote consistent and universally understood methods and formulas, allowing users to avoid dependence on metrics from other providers with unclear methods.
- ▪The Price-to-Earnings ratio for Microsoft is reported differently across various websites, including Stockopedia, Morningstar, and Yahoo Finance.
- ▪The FinanceToolkit is an open-source toolkit that provides transparent calculations for over 200 financial ratios and indicators.
- ▪The toolkit supports a wide range of financial instruments, including Equities, Options, Currencies, Cryptocurrencies, ETFs, Mutual Funds, and Indices.
Opening excerpt (first ~120 words) tap to expand
While browsing a variety of websites, I repeatedly observed significant fluctuations in the same financial metric among different sources. Similarly, the reported financial statements often didn't line up, and there was limited information on the methodology used to calculate each metric. For example, Microsoft's Price-to-Earnings (PE) ratio on the 6th of May, 2023 is reported to be 28.93 (Stockopedia), 32.05 (Morningstar), 32.66 (Macrotrends), 33.09 (Finance Charts), 33.66 (Y Charts), 33.67 (Wall Street Journal), 33.80 (Yahoo Finance) and 34.4 (Companies Market Cap). All of these calculations are correct, however the method of calculation varies leading to different results.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at GitHub.