What does pe valuation mean?

Pe valuation is a ratio, the numerator is PPce, and the denominator is E (earning, the company's income), so it is what we call the price-earnings ratio in our daily life. Generally speaking, a company's income is sustainable, so the company's external price should be multiple of the company's income. Therefore, high-growth companies have high pe, while stable companies such as consumption and industry have relatively low pe. When pe is 1, the so-called annual profit per share of the company is equal to the stock price.

1, PE is a concept used by listed companies, and it is also a comparable number. The numerator is P (share price) and the denominator is E (return). Generally speaking, this is not a fraction, but a multiple of an integer. In other words, if the company's profit is sustainable, then the company's external price should be a multiple of the company's profit. When PE is 1, that is, when evaluating enterprises, the pricing of each share is conservative without considering the long-term sustainable development of enterprises in the future.

2.Pe valuation method is price-earnings ratio valuation method, and the calculation method is price-earnings ratio = closing price per share/after-tax profit per share in the previous year. P/E ratio valuation method and P/E ratio valuation method are commonly used to evaluate the value of stock investment in mature foreign securities markets, but there are some limitations as a single index.

3. The combination of P/E ratio and P/E ratio can reflect the relative value of listed companies, which is more conducive to investors to make correct judgments on the investment value of stocks. According to the characteristics, application limitations and growth of listed companies in China, combined with the conclusion of empirical research, this paper puts forward a comprehensive value evaluation method of low P/E ratio and low P/E ratio combined with growth factors, which can reflect the investment value of listed companies in China more objectively. For example, the total share capital of the company has increased compared with the end of last year due to bonus shares, conversion of reserve fund into share capital, rights issue and other reasons. After-tax profit per share should be diluted according to the change of total share capital.

4. If the purchase of stocks is purely for dividends, and the company's performance has remained unchanged, it shows that receiving dividends has the same meaning as interest income. For investors, whether to deposit money in the bank or buy stocks depends first on whose investment yield is high. Therefore, when the stock price-earnings ratio is lower than the standard price-earnings ratio converted from the bank interest rate, the funds will be used to buy stocks, otherwise the funds will flow to bank deposits, which is the simplest and most intuitive price-earnings ratio pricing analysis.