Calculation Instruction of Index PE and Index Dividend Yield

Calculation Instruction of Index PE and Index Dividend Yield



Calculation Formula of Index PE

PE ratio equals to the market price/earning per share (EPS). IndexPE is calculated using the shares weighted method, and constituent’s EPS is based on the last year’s annual report. To provide more analysis and comparing tools for investors, CSI indices series adopt two different methods, that is total shares weighted method and adjusted shares weighted method, to calculate the index PE.

Index PE1=∑（Shares×Price）/∑（Shares×EPS）,
Index PE 2=∑（Adjusted Shares×Price）/∑（Adjusted Shares×EPS）.


Calculation Formula of Index Dividend Yield

Dividend Yield equals to annual regular cash dividends per share/price. Index Divided Yield is calculated using the shares weighted method, and constituent’s annual regular cash dividends per share is the cash dividends per share issued in the last year. To provide more analysis and comparing tools for investors, CSI indices series adopt two different methods, that is total shares weighted method and adjusted shares weighted method, to calculate the index divided yield.

Index Divided Yield 1= ∑（Shares×Annual Cash Dividends per Share）/∑（Shares×Price）×100%,

Index Divided Yield 2= ∑（Adjusted Shares×Annual Cash Dividends per Share）/∑（Adjusted Shares×Price）×100%.

Note 1：Adjusted Shares is constituent shares used for index calculation adjusted by the free float category-weighted method.(See Methodology of CSI300 and CSI Size Indices)

Note 2: CSI adjusts the constituent EPS based on the latest annual report in May each
year for index PE calculation and the annual cash dividends per share based on the real cash dividends issued last year in January for index Dividend Yield calculation.