Question: How do I get the average PE of the ASX as a whole, the top 200, and PE by sector?
Answer (by Paul Rickard): A number of broker sites (such as CommSec or Nabtrade) have this data. Also, the AFR publishes it on Monday. The table is called – “ASX P/E Ratio and Div Yield Series”. You can access it at here [1] and download the weekly investor edition.
One very important caveat – the calculations are based on historic earnings and dividends and the current share price. They are not prospective.
If you want prospective, then you need to access broker research.
Question: Paul, thank you for your performance article. You mention that because funds in person mode don’t pay tax, you expect an additional 15% in performance. But, funds in pension mode are withdrawing funds (the pension) on a regular basis, and in some cases large sums, so actual final balance $’s are a bit misleading. Should I simply adjust the balance to add the pension withdrawals back in and calculate from there?
Answer (by Paul Rickard): Yes, you certainly need to take into account the withdrawals you are making. Most software programs will do this, however if you are calculating performance manually, one easy way is to add back the pension withdrawals to your end of year balance.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.