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QuestionsCategory: Financials QuadrantFinancial analysis – Number of shares, Amazon
thewalkingbun asked 12 months ago
Hi Victor,  I have some queries regarding the numbers to be filled in the excel template. 
  1. Share price calculation: Do we take the average between 1 Jan – 31 Dec of the year (i.e. 1 Jan 2022 – 31 Dec 2022 for 2022 share price) or how the year is considered in PE ratio (i.e. 1 Mar 2022 – 28 Feb 2023)? I was comparing the numbers I got to the numbers you have shared but I was unable to get the exact figure. Would the daily or monthly amount affect the calculation? I received different results when calculating the average for both. 
Re the analysis of Amazon in the excel sheet I had emailed you:
  1. Do I multiply the number of shares by 20 for years leading up to 2021 for the stock split? 
  2. Am I supposed to take the adjusted close stock price for the year with the stock split?
  3. Re extraordinary items: What is the difference between marketable securities sale and equity securities adjustment? Do the adjustments mean that the P/L is not realised yet and hence I don't have to consider it in the extraordinary items? I had tried investigating the numbers in the notes section but was unable to tally them with the amounts reflected on the income statement. 
1 Answers
Victor Chng Staff answered 11 months ago
Hi SY,  
  1. The share price input is to look at the PE multiple trading at a specific year. Since you are plotting the PE chart, you can skip this step as the PE chart is the better way to view it. 
  Regarding Amazon:  
  1. Yes, those years before the share split. You have to multiply by 20. 
  2. Take the close price, it has been adjusted for split.
  3. Can you point me to the page where you see the equity securities adjustment