What is the reasonable P E ratio for each industry

When the P/E ratio is around 20 times, it has investment value regardless of industry. It is also reasonable to reach 30 or 40 times the more popular **. Relying on the P/E ratio to select stocks is not necessarily accurate, and some ** P/E ratios are as high as hundreds of times, and they will still rise, such as Xidan Shopping Mall.

Some are only more than ten times, and they can't rise, such as steel. It mainly depends on the bookmaker.

1. The meaning of the price-earnings ratio.

The price-earnings ratio (PE or PER) is also known as the "price-to-earnings ratio", "price-to-earnings ratio" or "price-to-earnings ratio". The P/E ratio is the ratio of **** divided by earnings per share (EPS). or the market capitalization of the company divided by the annual profit attributable to shareholders.

When calculating, the stock price is usually based on the latest ** price, and in terms of EPS, if it is calculated according to the published EPS of the previous year, it is called the historical P/E ratio;The EPS estimates used to calculate the estimated P/E ratio generally use the consensus estimates, which are the average or median estimates obtained by the institutions that track the company's performance by collecting the ** of multiple analysts. There is no set criterion for what constitutes a reasonable P/E ratio.

2. The price-earnings ratio is the ratio of a certain **per price** to earnings per share.

The P/E ratio is widely talked about in the market, and usually refers to the static P/E ratio, which is usually used as an indicator to compare whether different P/E ratios are overvalued or undervalued. When using the price-to-earnings ratio to gauge the quality of a company**, it is not always accurate. It is generally believed that if a company's P/E ratio is too high, then it has a bubble and is overvalued.

When a company is growing rapidly and its future performance growth is very promising, when using the P/E ratio to compare the investment value of different **, these ** must belong to the same industry, because the company's earnings per share are relatively close at this time, and it is effective to compare them with each other.

On the one hand, investors often do not believe that the earnings figures calculated in strict accordance with accounting standards truly reflect the profitability of the company on the basis of continuing operations, so analysts often adjust the company's officially announced net profit on their own.

Generally speaking, it is more reasonable for all industries to be within 15-20.

Briefly talk about the price-to-book ratio, the price-to-book ratio refers to the ratio of each stock price and the net assets of each share, and the price-to-book ratio can be used for investment analysis. Generally speaking, if the price-to-book ratio is relatively low, then the value of the investment is higher, on the contrary, the higher the price-to-book ratio, the lower the investment value, so what should be the value of the price-to-book ratio to be reasonable? Generally speaking, the price-to-book ratio is generally between 3-10, which is a reasonable range.

The role of the price-to-book ratio is to be used in investment analysis. The book value of each share is reflected by the net assets of each share, which is measured by cost, and the market price of each share is the value that these assets now have, which is also the result of transactions in the market. The price-to-book ratio can better reflect the "pay is return", which can help investors find which listed company can get higher output with less input.

2.What is the difference between a price-to-book ratio and a price-to-earnings ratio?

The price-to-book ratio is calculated as follows: price-to-book ratio = **market price net assets per share.

The P/E ratio is calculated as: P/E ratio per market of common stock Earnings per share per year of common stock.

In the calculation of the price-to-book ratio, if the market price is higher than the book value, then the quality of the company's assets will be better and have development potential, otherwise, the quality will be slightly worse and will not have certain development prospects. The market price of a good, high-quality ** is generally much higher than the net worth per share.

The P/E ratio is a good indicator to compare whether it is overvalued or undervalued when it is different. Generally speaking, the lower the P/E ratio of a **, the shorter the investment period, then the risk is less, if the P/E ratio of this ** is too high, then this ** may have a bubble, and the value may be overvalued. It is worth noting that when using the price-earnings ratio for comparison, the ** used for comparison must belong to the same industry, because at this time, the company's earnings per share are relatively close, so that the comparison is more effective.

P/E ratio = share price Earnings per share (EPS) is a reflection of how much a company would have to spend to recoup its costs at its current level of earnings, and this value is generally considered to be a reasonable range between 10 and 20. When the price-to-book ratio is 2, the market-to-market yield is 5; When the price-to-book ratio is 3, the market-to-book rate of return Therefore, when the price-to-book ratio is more than 2 times, there is no investment value, so it is more reasonable for the price-to-book ratio to be lower than 2.

You are auspicious for the New Year, boss, and it is generally believed that it is normal for the P/E ratio to remain between 20 and 30. [1. The price-earnings ratio is too high, the stock price is low, the risk is small, and it is worth buying; If it is too large, it means that the stock price is high and the risk is high, so it should be considered when buying.

Questions. Ok thanks.

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