What is the average price-earnings ratio of the automobile industry?

The historical average of relevant industries: motor 16 times, automobile 19 times, and steel PB 1.2 times (steel is not suitable for PE valuation).

The current valuation has a certain discount compared with the historical average, but it is not absolutely attractive. The low point of present value is mainly the high income of the current automobile industry. Historically, PE in the automobile industry fluctuated greatly, with the lowest point close to 10 times, and the highest point could not be calculated (the industry has a total loss record in stages).

After the commodity value is converted into cost price plus profit (k+p), it includes the possibility that profit deviates from surplus value. Because the profit is the balance that exceeds the cost price, and the cost price is less than the value of the goods, this provides the possibility for a single capitalist to sell goods above the cost price but below the value.

So that the realized profit is inconsistent with the actual surplus value contained in the commodity in quantity. Capitalists use the difference between commodity value and cost price as the driving force of market competition.