Albert Tan asked 1 year ago
Hi! I noted that we use Annual EPS to plot the valuation chart.
If Quarterly EPS is available, should we use that instead? Why or why not? Thanks
If Quarterly EPS is available, should we use that instead? Why or why not? Thanks
1 Answers
Victor Chng Staff answered 1 year ago
Hi Albert,
Our charts are plotted quarterly because we use software. However, if you were to do it manually, as Jay mentioned above, it would be a very tedious process. That’s why I teach AQ members to plot using historical data to get a rough estimate of intrinsic value.
In most cases, the difference between the historical average and the quarterly average is small—typically around ±5 to 6. However, in a few situations where the company is growing very quickly, the difference can be more significant. In such cases, you can consider using a 5-year chart instead of a 10-year chart.
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My take is if you plotting it manually, quarterly EPS will be more tiring versus Annual EPS. otherwise quarterly EPS will give more updated figure