Go to the Globe and Mail homepage

Jump to main navigationJump to main content

AdChoices

Globe Investor

Inside the Market

Up-to-the-minute insights
on developing market news

Entry archive:

Companies within the same industry use different calculations to arrive at non-GAAP metrics that have the same name. (iStockphoto)
Companies within the same industry use different calculations to arrive at non-GAAP metrics that have the same name. (iStockphoto)

Investors need to stop blindly believing in the financial metrics of TSX stocks Add to ...

Subscribers Only

According to Bloomberg, the S&P/TSX index is trading at 22.7 times trailing earnings. But what if you knew that the majority of the figures used to calculate that metric were each company’s own creation, were not audited, and might not be comparable?

Now what if you knew that the same index was trading at 48.9 times earnings using the figures that were produced according to the appropriate accounting rules and independently audited?

Report Typo/Error

Follow us on Twitter: @GlobeInvestor

Also on The Globe and Mail

What are the top complaints Canadians have about banks? (The Globe and Mail)

Next story

loading

For Globe Unlimited Subscribers

Business videos »

Most popular videos »

Highlights

Most Popular Stories