Compustat Adjustment Factor
Posted: 20 August 2014 12:49 PM   [ Ignore ]
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Hi everyone,

I am sorry for my simple question, but I am totally confused with the adjustment factor (cum) in Compustat.
Actually I thought that I have to adjust prices by dividing the factor and adjust shares outstanding by multiplying the factor. However, the user manual states that data in the PDE Files (Price, Dividend and Earnings) is already adjusted.
So if I use the web query in WRDS do I get adjusted data or do I have to adjust them by myself?

Thank you very much in advance for your help!

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Posted: 20 August 2014 03:23 PM   [ Ignore ]   [ # 1 ]
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hi prww,

Not a simple question at all - I am also confused every time I need to use this data.

I usually look up a few companies and manually inspect the data to see what is going on. By the way, stock price and #shares are adjusted in ‘opposite’ directions. So, adjusted or un-adjusted, #shares x price is the same number.

best regards,

Joost

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Posted: 21 August 2014 02:38 AM   [ Ignore ]   [ # 2 ]
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Thank you very much Joost

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Posted: 21 August 2014 08:40 AM   [ Ignore ]   [ # 3 ]
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you’re welcome, Prww smile

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