REFS is
a mine of invaluable information for the private investor.
Selecting shares without its help is like trying to
clap with one hand tied behind your back.
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PRR
(Price-to-research ratio)
The calculation
of PRR is as follows:
LATEST SHARE
PRICE
-----------------------------------
= PRR (x)
R & D
EXPENDITURE PER SHARE
(NOTE:
The PRR is not shown if the result of the calculation is 100
or greater.)
Research
and development, or ‘r & d’, expenditure per share is calculated
using information disclosed in the latest available annual report,
and is annualised where necessary. The r & d figure used
is after deducting any amounts capitalised, and is divided by
the weighted average number of ordinary shares in issue during
the period.
The calculation
of r & d per share is as follows:
R & D
EXPENDITURE (£)
----------------------------------
X 100p = R & D PER SHARE (p)
WEIGHTED
AV. SHARES IN ISSUE
The r
& d per share can be subject to adjustment for a variety
of reasons falling into the following two categories:
annualisation
of accounting periods which are greater or less than 12
months in
duration
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