What is PE and what does PE generally mean?

PE generally refers to the price-earnings ratio. P/E ratio, PE for short. Private equity investment private equity, referred to as PE. Polyethylene, PE for short.

I believe many people will often come into contact with the letters PE on the Internet, but what these two letters mean may not be clear to many people. Let's study these two letters together.

0 1

Private equity investment Private equity? PE？ In China, it is often called private equity investment. From the perspective of investment methods, according to the definition of relevant foreign research institutions, it refers to the equity investment in private enterprises, that is, unlisted enterprises. In the process of transaction implementation, the future exit mechanism is considered, that is, through listing, mergers and acquisitions or management buyback, the shares are sold for profit. Such as: PE fund investment

02

Price/earnings ratio? PE？ Price-earnings ratio (PER) Price-earnings ratio is one of the most commonly used indicators to evaluate whether the stock price level is reasonable. The same result can be obtained by dividing the stock price by the annual earnings per share (EPS) and then dividing the company's market value by the annual profit attributable to shareholders.

03

Short for polyethylene? PE？ It is a compound obtained by catalytic polymerization of ethylene with a catalyst.

04

The source of funds for private equity investment is to raise funds in the form of non-public offering for natural persons with risk identification ability or institutional investors with affordability. Private Equity Investment (PE) in 2008? Red? Today, the high profit rate and the threshold of tens of millions of yuan make it a unique investment field. More and more banks cooperate with trust companies to provide PE investment products for high-end customers. It is generally believed that PE investment is only suitable for high-net-worth customers with strong risk tolerance. Compared with other investments such as real estate and stocks, PE mainly invests in the equity of unlisted companies, while the target of stock investment is the equity of listed companies, and the target of real estate investment is physical assets such as houses and land. In terms of fund raising, its sales and redemption are carried out by the fund management subject through private consultation with investors. Therefore, PE investment institutions enjoy certain voting rights in the decision-making management of the invested enterprises. In terms of liquidity, PE's liquidity is poor, and it usually takes about 3 -5 years from investment to withdrawal.

05

Although PE and VC are both investments in pre-listed enterprises, they are very different in the investment stage. VC invests in small and medium-sized enterprises, most of which are high-tech enterprises. PE focuses on the growth and expansion stage of enterprises, which can be high-tech enterprises or traditional industries.