The price to earnings ratios are very high. Why is it still rising

Updated on society 2024-03-04
14 answers
  1. Anonymous users2024-02-06

    From many aspects, the fundamentals and technical aspects of the price-earnings ratio are high, but as long as the company's prospects are good, it is still a bull market, and it will still rise. If the elixir is developed, the price-earnings ratio is 80,000, and it may rise.

  2. Anonymous users2024-02-05

    The P/E ratio is just one indicator.

    Now the popular saying is that with asset injection, the price-to-earnings ratio can be high.

    There is also a high growth rate, such as Suning Electric, which grows 100% every year, and the PEG is 100, which can have a 100 times price-earnings ratio, but whether it can maintain 100% growth in the future is a question.

    Overall, a low P/E ratio is relatively less risky.

    Beijing's urban and rural areas are currently in a consolidation phase, and there is no obvious indication that they are going to rise.

  3. Anonymous users2024-02-04

    In a mature ** P/E ratio should be around 15. But China is in its infancy. There are many stocks with high price-to-earnings ratios that still rise without knowing how much they are at stake.

    The greater the risk, the higher the reward. And Sinopec, which has a very low price-to-earnings ratio. Bank of China.

    China Industry and Commerce. It's hard for them to go up big. But they are very resilient to falls.

    For example, they don't fall sharply. Sinopec also rose. Personal advice, how you** is an investment behavior, you go to buy stocks with low P/E ratios.

    Speculation is hard to say.

  4. Anonymous users2024-02-03

    Because Beijing Chengxiang is a commercial stock in Beijing, some people believe that the Olympics will bring benefits to companies in Beijing, and the future performance expectations are reflected.

  5. Anonymous users2024-02-02

    The price-earnings ratio is already very high**, why does it continue to rise?

  6. Anonymous users2024-02-01

    P/E ratio isn't everything.

    Sometimes the expectations of investors carry more weight than all indicators!

  7. Anonymous users2024-01-31

    What you see from the software is a static P/E ratio, and if you want to calculate it from a dynamic P/E ratio, it is not necessarily high.

  8. Anonymous users2024-01-30

    **It's to fry the future!! Stir-fry in anticipation.

  9. Anonymous users2024-01-29

    Now, I don't look at anything else, just look at whether there is an institutional intervention.

  10. Anonymous users2024-01-28

    P/E ratio = earnings per share per ** price.

    This is an important indicator to pay attention to in investment, and it represents the amount of money that investors in the market pay for the company's earnings per share. If the company's P/E ratio is higher than the average P/E ratio, it means that investors are optimistic about the company's future growth, and vice versa.

  11. Anonymous users2024-01-27

    The P/E ratio is the ratio of market price to earnings per share, expressed as an integer multiple of the stock price per share. The price-earnings ratio can roughly reflect the level of the stock price, indicating how much other currencies investors are willing to use to buy this **, which is the market's valuation of the **.

    The P/E ratio is a relative valuation concept. To a certain extent, it reflects investors' expectations of the future profitability of listed companies, and it cannot be judged purely by high and low, but needs to be compared horizontally (historical price-earnings ratio) and vertically (in the same industry) to study and judge in many aspects.

    You can check the P/E ratio through the software, such as GF Software "GF Easy Rush Gold", the P/E ratio (dynamic) is the dynamic P/E ratio, the P/E ratio (static) is the static P/E ratio, and the P/E ratio (TTM) is the P/E ratio of the last 12 months.

  12. Anonymous users2024-01-26

    The price-earnings ratio, abbreviated as PE, is the ratio of stock price to earnings per share, and is an important indicator to measure the level of valuation.

    The formula for calculating the P/E ratio is to divide the annual earnings per share (EPS) by ****, in the actual application process, the P/E ratio is also divided into static P/E ratio and dynamic P/E ratio, the difference between the two is the calculation process of earnings per share, the static P/E ratio per share is taken from the earnings per share announced in the previous fiscal year, and the dynamic P/E ratio of the earnings per share using the average estimate of the market, that is, the average or median of the estimate obtained by the institution that tracks the company's performance by collecting the ** of multiple analysts.

    Is it better to have a high or low P/E ratio:

    The P/E ratio is the current share price divided by earnings per share, and the smaller the value, the higher the return and the greater the value.

    But different industries should be treated differently, for the growth of the strong, because its performance growth will reduce the future P/E ratio level, so it is normal to be slightly higher at present, for the performance of the declining, due to the impact of performance factors, the current lower P/E ratio, the future will become higher, even if the P/E ratio is low, its investment value is not large.

    Therefore, there will be such a situation, the current P/E ratio is higher, but due to the rapid growth of the company's performance, the higher the stock price, the lower the P/E ratio, on the contrary, for the sharp recession, there will be a higher fall, the higher the P/E ratio.

    Therefore, to look at the price-earnings ratio, we should not only look at the absolute number, but also refer to the development of the company's industry and itself.

    These can be slowly comprehended, and it is best for investors to have some preliminary understanding before entering. In the early stage, you can use a treasure simulation to see, there are some basic knowledge materials worth learning, and you can also establish your own set of mature knowledge and experience through the above relevant knowledge. I hope it can help you, and I wish you a happy investment!

  13. Anonymous users2024-01-25

    The price-to-earnings ratio is the ratio of market price to earnings per share, which is usually used to measure the level of stock price and the profitability of a company.

    If the P/E ratio is high, it means that the market performance of the ** is better.

    From an investment perspective, the lower the P/E ratio, the more room for investment.

    Because the price-to-earnings ratio is low, investors can buy** at a low price and make a return.

    Of course, the higher the P/E ratio, the better, and the P/E ratio of a ** should be analyzed from various factors such as the company's background and performance.

    A high price-earnings ratio indicates that the current stock price is higher, and the higher the stock price, the higher the investment risk.

    Of course, sometimes a company's stock price can be overvalued from the price-earnings ratio, and if the value is within 30, then it is more reasonable.

    If it exceeds 30, the company's share price may be overvalued.

    Extended Information: The P/E ratio is the ratio of the P/E ratio divided by the earnings per share, also known as the P/E ratio.

    The price-to-earnings ratio is an important financial indicator that investors must master.

    The P/E ratio reflects how many years our investment can be fully recovered through dividends when the payout ratio is 100% and the dividends are not reinvested, with the same earnings per share.

    In general, the lower the price-earnings ratio of a company, the lower the profitability of the market price relative to the price, indicating that the shorter the investment period, the smaller the investment risk, and the greater the investment value;

    Otherwise, the conclusion is the opposite.

    There are two ways to calculate the P/E ratio.

    One is the ratio of the stock price to the earnings per share for the past year.

    The second is the ratio of the stock price to the current year's earnings per share.

    The former is calculated based on earnings per share of the previous year, and it cannot reflect the change in investment value due to changes in earnings per share in the current year and in the future, so it has a certain lag.

    Buying ** is to buy the future, so the profitability of listed companies in the current year has a greater reference value, and the second price-earnings ratio reflects the actual investment value.

    Therefore, how to accurately estimate the earnings per share level of listed companies in the current year has become the key to grasp the value of investment.

    The earnings per share of a listed company in the current year is not only related to the profitability of the enterprise, but also closely related to the change in the share capital of the enterprise.

    After the expansion of the share capital of a listed company, the earnings amortized to each share will decrease, and the company's price-to-earnings ratio will increase accordingly.

    Therefore, after a listed company issues new shares, bonus shares, bonus shares transferred from provident fund and allotment, it must dilute earnings per share in a timely manner to calculate the correct price-to-earnings ratio with guiding value.

    Based on the 1-year bank fixed deposit rate, we can calculate a risk-free P/E ratio in multiples (1, below which you can** and the risk is not significant.

  14. Anonymous users2024-01-24

    The price-to-earnings ratio (P/E ratio) is also known as the "price-to-earnings ratio", "price-to-earnings ratio" or "price-to-earnings ratio". The price-to-earnings ratio is one of the most commonly used indicators to assess whether a stock price level is reasonable, and is calculated by dividing the stock price by the annual earnings per share (EPS) (the same can be achieved by dividing the company's market capitalization 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 are generally based on 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.

    The price-to-earnings ratio is the ratio of some price per share 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 ** are overvalued or undervalued. When using the price-to-earnings ratio to gauge the quality of a company**, it's 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 company's profitability on a continuing basis, so analysts often adjust the company's officially announced net profit on their own.

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