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Concepts & Tutorials

Sensex Earnings Charts

My latest column at Yahoo is about the Underreported Sensex P/E Ratio . In there, I speak of how the earnings structure has changed dramatically if you look at the Standalone Earnings (which BSE uses to report) versus the Consolidated earnings (which they ignore). You might be interested in the way the Consolidated and Standalone Earnings are:

Sensex Constituent Earnings

And then, how these earnings play a role in the Sensex EPS (according to the weights):

Sensex Weighted Earnings Contribution

And if you wanted to look an unweighted contribution (that is, if you disregard weights:

Non Weighted Earnings Contribution: Sensex

Different kinds of calculations for the Sensex EPS:

Different Calcs for Sensex EPS

  1. Reported = what is reported by the BSE.
  2. Mkt Cap/Standalone: The summed up market capitalization of constituent stocks divided by the sum of standalone earnings. (equal weighted)
  3. Mkt Cap/Consolidated: The summed up market capitalization of constituent stocks divided by the sum of consolidated earnings. (equal weighted)
  4. Wt Mkt Cap/Standalone: The summed up market capitalization of constituent stocks weighted by their individual weights in the sensex, divided by the sum of similarly weighted standalone earnings.
  5. Wt Mkt Cap/Consolidated: The summed up market capitalization of constituent stocks weighted by their individual weights in the sensex, divided by the sum of similarly weighted consolidated earnings. (This is what I like to consider)

Now what we need is EPS Growth and how it has happened for each stock, which stock has contributed how much to the Sensex EPS growth, both standalone and consolidated. But for that there is too much data gathering required; something that will need much more effort on my part. Something for another day.