ReachRichInsights › F10 Fundamentals: ROE/EPS/BVPS Derivation & Consistency

F10 Fundamentals: ROE/EPS/BVPS Derivation & Consistency

"This company's ROE is 5 points higher" — is that a meaningful comparison? Only if both use the same convention. Fundamental derivation conventions are deeper than they look, and unifying them is the data layer's job.

Common derived metrics

Metric Derivation
EPS Net income ÷ total shares (single-quarter / TTM / annual)
BVPS Attributable equity ÷ total shares (period-end)
ROE Net income ÷ avg attributable equity (TTM)
ROA Net income ÷ avg total assets
Revenue growth Current revenue / YoY revenue - 1
Dividend yield TTM cash dividend / current market cap

Three convention pitfalls

1. TTM vs Single-quarter vs Annual

"ROE 12%" — is it trailing 12-months (TTM), last full fiscal year, or single-quarter annualized? TTM is best for time-series comparison, but many APIs default to single-quarter annualized, which overstates vs TTM.

2. Net income definition

Adjusted vs reported? Attributable to parent vs total? Most cases use net income attributable to parent, excluding non-recurring items (more stable, more reflective of core operations). Some APIs return total reported instead.

3. Average vs period-end equity

ROE denominator: "average" ((begin + end) / 2) vs "period-end". Academic standard is average; simplified version uses period-end. Difference is material when equity changes rapidly.

Cross-source discrepancies

Same company, same point in time — ROE in EastMoney vs THS vs Tushare vs Wind can differ. Reason: each picks different conventions above. Within a single platform, conventions must be internally consistent, otherwise factor ranking gets distorted.

Consistency at the data layer

ReachRich fixes conventions at the F10 derivation layer (TTM + net-income-attributable-to-parent-excluding-non-recurring + average equity), and normalizes before returning from any upstream API.