How to I calculate the average P/E of a particular industry?

How do you calculate the P/E ratio by industry?

  • I would like to know how to calculate the P/E ratio by industry. On http://in.reuters.com/finance/stocks/overview?symbol=DTV.O&exchange=XXCX, it displays the P/E ratio for the current stock, the industry and the sector: FINANCIALS DTV.O Industry Sector P/E (TTM): 12.84 38.88 15.37 EPS (TTM): 4.81 -- -- ROI: 19.26 22.72 15.30 ROE: -- 23.20 18.69 Does anyone know the formula ? My problem is that I have historical data about P/E by stock, and I need to calculate the P/E radio by industry.

  • Answer:

    You could sum the P/E ratio of all the companies in the industry and divide it by the number of companies to find the average P/E ratio of the industry. Average P/E ratio of industry = Sum of P/E ratio of all companies in Industry / Number of companies in industry

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