The price-to-earnings ratio, also known as the price-to-earnings ratio, is the ratio of the stock price divided by earnings per share. The P/E ratio that is widely discussed in the market usually refers to the static P/E ratio, which is often used as an indicator to compare whether stocks of different prices are overvalued or undervalued.

The price-to-earnings ratio reflects how many years the investment can be fully recovered through dividends when earnings per share remain unchanged, when the dividend payout ratio is 100%, and the dividends are not reinvested. Generally speaking, the lower the P/E ratio of a stock, the lower the market price relative to the profitability of the stock, indicating that the shorter the investment payback period, the smaller the investment risk, and the greater the investment value of the stock; conversely, the conclusion is the opposite.

If you need to know the stock market, you can log in to the Ping An Pocket Bank APP-Finance-Stock Futures-Securities Service to query the information.

Warm reminder:

1. The above content is for reference only and does not make any suggestions. Relevant products are issued and managed by the corresponding platform or company, and our bank does not bear the responsibility for the investment, redemption and risk management of the products;

2. There are risks in entering the market, so investment needs to be cautious. Before making any investment, you should ensure that you fully understand the investment nature of the product and the risks involved. After understanding and carefully evaluating the product, you can make your own judgment on whether to participate in the transaction.

Response time: 2022-02-11. For the latest business changes, please refer to the official website of Ping An Bank.