- LuciferPopcatLv 41 decade agoFavorite Answer
Hang Seng Index Company use total market Capital / Total Earnings to derive P/E.
To evaluate if the stock P/E is fair or not, you also have to look at the sector P/E. For example, if HSI PE is 12x and your stock is at 14x. This is only to say that your stock has a higher PE than HSI. But if the sector PE is 16x, then this is to tell you that your stock is cheaper than your average industry PE
Attached the official website of HSI Co. with their calculation methods
Hope this help
CheersSource(s): http://www.hsi.com.hk/ and my experience