What is the P E ratio? What is the P E ratio

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.

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.

The price-to-earnings ratio is also known as the "price-to-earnings ratio", "price-to-earnings ratio" or "price-to-earnings ratio". The price-earnings ratio refers to the ratio of **** divided by earnings per share (earnings per share, EPS), or the market value of the company divided by the annual profit attributable to shareholders.

The P/E ratio in the market 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'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 profitability of the company on the basis of continuing operations, so analysts often adjust the company's officially announced net profit on their own.

2. There is a risk in entering the market, and investment needs to be cautious.

The P/E ratio model is that the P/E ratio can be used to determine the relative level of a specific ** similar yield in other markets at a certain time, similar yield ** in the same market, and ** at this moment compared with ** at a previous time. It does not provide an absolute** valuation standard.

The financial mavericks are a family that solves doubts for you and the general public; The products of the propaganda enterprise are familiar to everyone; Stay in the country to inherit and benefit people.

The price-to-earnings ratio (P/E or Per) is also known as the "P/E ratio", "**P/E ratio" or "market P/E ratio". The P/E ratio is the ratio of **** divided by earnings per share (EPS). Or divide the market value of the company by the profit attributable to shareholders each year.

When calculating, the stock price is usually taken from 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; In general, consensus estimates are used to calculate the EPS estimates used in the P/E ratio, which is the average or median estimate obtained by institutions that track a company's performance and collect many analysts**. There is no set standard for what constitutes a reasonable P/E ratio.

The P/E ratio is the ratio of earnings per share to earnings per share. The widely discussed price-to-earnings ratio (P/E ratio) usually refers to a static P/E ratio, which is usually used as an indicator to compare whether different ratios are overvalued or undervalued. When it comes to measuring the quality of a company, the P/E ratio is not always accurate.

Generally speaking, if a company's P/E ratio is too high, then there is a bubble in this ticket, and its value is overvalued. When a company is growing rapidly and its future performance is very optimistic, when comparing the investment value of different ** with the price-earnings ratio, these ** must belong to the same industry, because the company's earnings per share are relatively close at this time, so it is effective to compare with each other.

Here we talk about PE in investment in detail, that is, the price-earnings ratio, which refers to the ratio of **** and earnings per share within a certain period of time, and the calculation formula is:

P/E ratio = per share**(p) Earnings per share (e).

Generally speaking, the lower the P/E ratio, the shorter the return on investment period, the lower the risk, and the greater the investment value; Conversely, the higher the P/E ratio, the longer the return period is likely to be.

However, it is important to note that this indicator cannot be used to compare companies in different industries. In addition, the P/E ratio is affected by the stock price, and there are many factors that affect the change of the stock price, so observing the long-term trend of the P/E ratio is more meaningful for our investment.

Difference between dynamic P/E ratio and static P/E ratio:

3. The smaller the P/E ratio, the better. The dynamic P/E ratio is smaller than the static P/E ratio, indicating that the development of this ** ticket is good.

P/E ratios are divided into static P/E ratios and dynamic P/E ratios.

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 dynamic P/E ratio is calculated using the static P/E ratio as the base and multiplied by the dynamic coefficient. The coefficient is 1 (1+i)n, where i is the growth ratio of the company's earnings per share, and n is the duration of the company's sustainable development.

For example, if the company can maintain this growth rate for 5 years in the future, i.e., n=5, the dynamic coefficient is 1 (1+35%)5=22%. Correspondingly, the dynamic P/E ratio is multiple, i.e.: 52 (Static P/E Knowing Loss Ratio:

20 yuan = 52) 22%. Compared with the two, the difference is so big that I believe that ordinary investors will be surprised when they see it, and they will suddenly realize. The dynamic P/E ratio theory tells a simple and profound truth, that is, investors must choose companies with sustainable growth.

Therefore, it is not difficult to understand why asset restructuring has become the eternal theme of the market, and some companies with poor performance have become market dark horses with the support of substantive restructuring themes.

Market price Earnings per share, the higher the P/E ratio, the higher the risk.