Why is there such a disparity between some ADR’s price here in the USA and the price in the home country?
For example RedBubble, RDBBY, is listed at 30.27 (dropped 18% today) in Charles Schwab, but its at < $5 in Australia, and it did not drop nearly that much.
https://shareholders.redbubble.com/site/investor-information/share-price-information
Check how many Australian units are in the ADR. Looks like 6 to me.
I could not find that information but that makes more sense.
Where did you see that?
The data point is called the ADR Ratio, but we don’t have it publicly available anywhere on the site. It indicates the number of foreign shares per ADR. In practice, because we don’t have foreign shares, end users don’t need to use the ADR ratio on Portfolio123. (We sometimes need it on the back end, though.)
Assuming that geov is correct about the units (thanks geov!), then each ADR is worth six of the Australian shares. Note also that the ADR is in U.S. dollars and the foreign shares are most likely to be quoted in Australian dollars, so there’s going to be a further adjustment based on the current exchange rate. One U.S. dollar is worth about 1.4 Australian dollars at the moment.
The number of foreign units per ADR can be easily calculated.
For example gold mining company Sibanye-Stilwater (SSW) closed today at ZAR 51.20 on the Johannesburg stock exchange. Their ADR (SBSW) closed at $12.96 on the NYSE. The exchange rate is $1.00 = ZAR 15.84. So 1 share of SSW is worth 51.20/15.84 = $3.23. So number of units per ADR is $12.96/$3.23 = 4.
You can get closing prices of most foreign stocks at https://www.marketscreener.com/ if you know the name of the company.