We couldn't seem to match our result for PE ratio. We used the variable NIADJ -- Net Income Adjusted for Common/Ordinary Stock (Capital) Equivalents, divided by CSHPRI -- Common Shares Used to Calculate Earnings Per Share - Basic. But we got a much smaller number than the listed 11. Do you know where the problem could be?


These are tricky, even if you are familiar with CRSP/Compustat. As always, when variable-hunting, you should experiment on data you know to be correct, like 10-K data, or perhaps published data from Google or Yahoo, and try and zero in on the correct variables. And, when possible, do not make your own formulas, you should use Compustat, e.g., for EPS I would use EPXPX, or possible EPSPI, but not try and calculate from Net Income ($M)/Shares (M). Note that PE is EPS/Common Shares, and you were calculating EPS. So you would need to use Price/EPSPX, or better, find a PE already calculated.


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