If I’m trying to calculate the eps, pe ratio and peg ratio of the previous years like 2025 and 2024. How do I get the current historical share price or am I going to use the current share price even though now it is 2026. Or how should I do it.
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Use historical share prices if you want to compare valuations for 2024 and 2025. Use the current 2026 price if you want to assess the shares at today’s price. But EPS does not use share price at all. The difference is between “What did the business earn?” and “What were investors paying for those eaRead more
Use historical share prices if you want to compare valuations for 2024 and 2025. Use the current 2026 price if you want to assess the shares at today’s price. But EPS does not use share price at all.
The difference is between “What did the business earn?” and “What were investors paying for those earnings?”
Imagine Mama Ngozi’s tomato business has been divided into shares. The profit belonging to each share comes from the business accounts. The price someone offers to buy a share is a separate matter. That price can change without changing the profit the business already earned.
Let us apply that to your three calculations.
EPS means earnings per share. It tells you how much of the company’s profit belongs to each ordinary share.
Basic EPS = Profit attributable to ordinary shareholders ÷ Weighted average number of ordinary shares during the year.
“Weighted average” simply means allowing for how long shares were in issue during the year, rather than automatically using the number at year-end.
For 2024 EPS, use the company’s 2024 figures. For 2025 EPS, use its 2025 figures. Neither calculation needs a share price.
The easiest starting point is the EPS already reported in the audited annual report. Check whether it is stated in naira or kobo. An EPS of 200 kobo is ₦2, not ₦200.
P/E means price-to-earnings ratio. It compares the price of one share with the earnings belonging to one share.
P/E = Share price ÷ EPS.
Suppose these are fictional figures:
At the end of 2024, the share price was ₦20 and full-year EPS was ₦2. The P/E calculated using those figures is 10.
At the end of 2025, the share price was ₦30 and full-year EPS was ₦2.50. The P/E is 12.
Now suppose the price in 2026 is ₦40. Dividing ₦40 by the 2025 EPS of ₦2.50 gives a P/E of 16.
That last calculation is valid, but label it correctly: “Current P/E using 2025 full-year earnings.” It is not the historical 2025 P/E.
For a simple year-by-year comparison, you can use the closing price on the last trading day of each company’s financial year, divided by that year’s EPS. Use the same method throughout.
But there is one important catch: full-year results are usually published after the year ends. So this is a comparison made with hindsight. If you want to know what an investor could actually have calculated on a particular date, use only earnings information already published by that date.
PEG takes the P/E and compares it with earnings growth.
PEG = P/E ÷ EPS growth rate expressed as a percentage number.
Using the fictional figures above, EPS rose from ₦2 to ₦2.50. That is 25% growth.
Using the 2025 P/E of 12:
PEG = 12 ÷ 25 = 0.48.
Use 25, not 0.25, in that calculation. Label this a PEG based on historical one-year growth. Many PEG calculations instead use expected future growth, so check the method before comparing figures. A low PEG alone does not prove a share is cheap, especially if profit jumped because of a one-off gain. PEG is generally not useful when earnings growth is zero or negative.
To get the historical prices, check NGX historical market reports or request dated closing prices from your stockbroker. Get EPS from the company’s audited reports on its investor relations page or NGX filings.
Also check for share splits or bonus issues. Prices and EPS must reflect the same share basis. Do not automatically use a data provider’s “adjusted close”, because it may also include dividend adjustments.
The simple rule is: EPS comes from the accounts. P/E adds the price for your chosen date. PEG adds a clearly stated earnings-growth measure. Always write down the dates and method beside your calculation.
See lesswhat is the best way to calculate the PEG when earnings growth is zero or negative.
what is the best way to calculate the PEG when earnings growth is zero or negative.
See lessThe best approach is not to force a PEG figure when earnings growth is zero or negative. Record it as “not meaningful” and assess the company using other measures. Here is why. If earnings growth is zero, you would be dividing the P/E by zero. That calculation is undefined. Do not record the PEG asRead more
The best approach is not to force a PEG figure when earnings growth is zero or negative. Record it as “not meaningful” and assess the company using other measures.
Here is why.
If earnings growth is zero, you would be dividing the P/E by zero. That calculation is undefined. Do not record the PEG as zero, because that could wrongly make the share look cheap.
If earnings growth is negative, you can get a negative answer mathematically, but it is not useful for the usual PEG comparison.
For example, suppose Mama Ngozi’s business has a P/E of 10, but its EPS falls from ₦2 to ₦1.80. These are illustrative figures.
EPS has fallen by 10%, so the calculation gives:
PEG = 10 ÷ (-10) = -1.
That -1 does not mean the investment is cheaper than one with a PEG of 0.5. It means earnings are shrinking, so the usual idea that “a lower PEG may suggest better value” no longer works.
For your 2024 and 2025 comparison, keep the EPS growth figure visible, whether it is 0% or negative. Beside PEG, write “N/M”, meaning “not meaningful”. That tells the story more honestly than forcing a number.
Then ask why earnings stopped growing. Did sales fall? Did costs or loan interest rise? Did the previous year contain a large profit that will not happen again? Did the company issue more shares, spreading its profit across more shareholders?
If EPS is still positive, you can still examine the P/E, alongside cash generated by the business, debt and dividend affordability. But a low P/E alone is not a bargain if earnings keep falling. If EPS is zero or negative, the usual P/E comparison also becomes unhelpful.
You may use a forward PEG, based on expected positive earnings growth, if there is a reasonable basis for that forecast. Label it clearly as a forecast, not an achieved result. Do not simply turn negative growth into a positive number or choose a different period just to make PEG look attractive.
PEG is one tool, not a compulsory score for every company. When growth disappears, understanding what happened to the business matters more than producing a ratio.
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