What are the stock valuation indicators?

What are the stock valuation indicators _ Which indicators do you look at in stock valuation?

When you choose a stock to buy, if you can buy it at a low price, we can get more income. Judging the relationship between price and value is valuation. The following are the stock valuation indicators compiled by Bian Xiao, which are for reference only, and I hope to help you.

What are the stock valuation indicators?

P/E ratio is the most commonly used valuation index, also known as P/E ratio, which refers to the ratio of stock price divided by earnings per share. P/E ratio can be divided into static P/E ratio, dynamic P/E ratio and rolling P/E ratio. P/E ratio is suitable for companies with good liquidity and stable profits, which is the premise of using P/E ratio. For companies with poor liquidity and long-term losses, its P/E ratio is of little significance. Cyclical industries also do not apply to P/E ratio.

P/B ratio is the ratio of share price to net assets per share. The higher the efficiency of assets management, the higher the P/B ratio and the greater the investment value. The more stable the asset value, the higher the P/B ratio. When enterprises mainly measure tangible assets, and they are assets with long-term preservation, the P/B ratio has reference significance.

Return on earnings is the share price of earnings per share, which can be said to be a variant of P/E ratio. The profit rate of return is equivalent to the reciprocal of the price-earnings ratio. Generally speaking, the higher the profitability, the lower the valuation, and the easier it is to be underestimated. Just like the P/E ratio, profitability is also applicable, and only the data of profitability of enterprises with good liquidity and stable income have reference significance.

The dividend yield is the ratio of the total dividend paid in a year to the current market price, that is, the ratio of interest to stock price. The dividend yield measures the yield of cash dividends, which fluctuates with the stock price. The higher the stock price, the lower the dividend yield. The dividend yield is closely related to the profit rate. The dividend yield is equal to the profit rate multiplied by the dividend yield.

Stock valuation depends on which index.

The lower the P/E ratio, the higher the valuation, the greater the potential, the higher the industry profit ranking, and the greater the room for growth. But the focus here is the relative price-earnings ratio of the same industry. For example, banks have always been the industry with the lowest absolute P/E ratio, but the valuation is not very high. On the one hand, it is influenced by the market environment, on the other hand, it is related to the total market value.

Most investors know P/E ratio = share price/earnings per share to obtain relevant data, and earnings per share will directly reflect P/E ratio. The P/E ratio is directly related to the company's financial statements, so it will be used as one of the main indicators to refer to the company's value.

While evaluating the price-earnings ratio, investors should also pay attention to the fact that cyclical stocks and stocks with large performance intervals are not suitable for analysis, and other indicators are needed to judge whether stocks are overvalued or undervalued.

Secondly, it depends on whether the stock itself is a hot concept or a government-supported project. Once it belongs to this kind of stock, breaking through the industry restrictions and following the concept hype, the valuation may be greatly improved.

Finally, we should also study the total market value effect of stocks and the persistence and essence of listed companies' profits. The smaller the total market value, the higher the theoretical valuation, and the better the profitability of listed companies. The main source of profits of listed companies is the main business, not the one-time salary or wealth management income, and the share price should be higher than the same period of last year.

What are the common indicators of stocks?

When you choose a stock to buy, if you can buy it at a low price, we can get more income. Judging the relationship between price and value is valuation. We mainly judge the valuation level by P/E ratio, P/B ratio, yield and dividend yield.

P/E ratio is the most commonly used valuation index, also known as P/E ratio, which refers to the ratio of stock price divided by earnings per share. P/E ratio can be divided into static P/E ratio, dynamic P/E ratio and rolling P/E ratio. P/E ratio is suitable for companies with good liquidity and stable profits, which is the premise of using P/E ratio. For companies with poor liquidity and long-term losses, its P/E ratio is of little significance. Cyclical industries also do not apply to P/E ratio.

P/B ratio is the ratio of share price to net assets per share. The higher the efficiency of assets management, the higher the P/B ratio and the greater the investment value. The more stable the asset value, the higher the P/B ratio. When enterprises mainly measure tangible assets, and they are assets with long-term preservation, the P/B ratio has reference significance.

Return on earnings is the share price of earnings per share, which can be said to be a variant of P/E ratio. The profit rate of return is equivalent to the reciprocal of the price-earnings ratio. Generally speaking, the higher the profitability, the lower the valuation, and the easier it is to be underestimated. Just like the P/E ratio, profitability is also applicable, and only the data of profitability of enterprises with good liquidity and stable income have reference significance.

The dividend yield is the ratio of the total dividend paid in a year to the current market price, that is, the ratio of interest to stock price. The dividend yield measures the yield of cash dividends, which fluctuates with the stock price. The higher the stock price, the lower the dividend yield. The dividend yield is closely related to the profit rate. The dividend yield is equal to the profit rate multiplied by the dividend yield.