A heavy regular financial report is a sharp weapon for investors to invest in value. How to discover and tap the potential value of listed companies can only be truly understood by careful investors. Today, Bian Xiao will share with you the knowledge of stock fund analysis for your reference only!

First: the price-earnings ratio relative to the profit growth rate.

P/E ratio is one of the most basic and important indicators to measure whether the stock price level is reasonable, and it is the ratio of stock price per share to earnings per share. It is generally believed that it is normal to keep the ratio between 20 and 30. If it is too small, it means that the stock price is low and the risk is small, so it is worth buying. Too big means that the stock price is high and risky, so be careful when buying.

But as a stock selection index, how can investors use the P/E ratio correctly to find a good stock? Whether the stock price is appropriate is measured by PEG, that is, the P/E ratio is divided by the profit growth rate and then multiplied by 100. PEG index (P/E ratio relative to profit growth rate) divided by the company's profit growth rate. When picking stocks, choose companies with low P/E ratio and high growth. These companies have a typical feature, pEG will be very low. PEG is less than 1, indicating that the stock is low in risk and cheap. PEG indicator (P/E ratio relative to profit growth rate) is Peter? Lynch invented the stock valuation index, which was developed on the basis of pE (price-earnings ratio) valuation, and it made up for the deficiency of pE in estimating the dynamic growth of enterprises.

The so-called pEG is to divide the company's price-earnings ratio (pE) by the compound growth rate of the company's earnings per share in the next three to five years. For example, if a stock's current P/E ratio is 20 times and its expected compound growth rate of earnings per share in the next five years is 20%, then the pEG of this stock is 1. When pEG is equal to 1, it shows that the valuation given to this stock by the market can fully reflect its future performance growth.

If pEG is greater than 1, the value of this stock may be overvalued, or the market thinks that the performance growth of this company will be higher than the market expectation.

PEG has always been an important factor in stock operation, so it is an important means to find and hold high-quality stocks with low PEG. For example, the steel sector continued to strengthen, the banking sector stood still, and liquor stocks rebounded sharply. These phenomena are important examples of pEG leading the plate. Taking liquor stocks as an example, leading liquor companies predict that the expected compound growth rate in the next three years will be around 35%, while the dynamic P/E ratio corresponding to the yield in 2007 is generally around 50 times, and the pEG value is 1.4, which obviously weakens the motivation of leading liquor companies to go further. In other words, the company's good business prospects have been reflected in the stock price rise.

Comparing the P/E ratio with the growth of the company's performance, those stocks with ultra-high P/E ratio look reasonable, and investors will not feel too risky. This is the pegged valuation method. Although pEG is not as popular as P/E ratio and P/B ratio, it is also very important, and in some cases, it is the decisive factor to determine the change of stock price.

The expected compound growth rate of leading bank stocks in the next three years is about 40%, while its dynamic P/E ratio in 2007 is generally about 30 times, with a pEG value of 0.75. Compared with the bank stocks when pEG was 0.4 last year, the momentum of its sharp rise is indeed not as good as before. Of course, the future upward trend has not changed because the P/E ratio is lower than the compound growth rate. The recovery of steel stocks exceeded the expectations of many institutions. At present, the market expects the compound growth rate of steel stocks to be around 25% in the next three years, while the dynamic P/E ratio of steel stock leaders in 2007 is around 1 1.5 times, and the pEG value is 0.46. The extremely low pEG value is an important reason for the continued strength of steel stocks this year.

In the United States, the current pEG is about 2, which means that the current P/E ratio in the United States is twice the growth rate of corporate profits. Whether China's A-shares or H-shares, or China's companies that issue American Depositary Receipts, their pEG is probably at the level of 1, or slightly higher than 1. Of course, we can't just talk about pEG valuation mechanically. It is also necessary to comprehensively evaluate the internal conditions of listed companies, such as the international market, macro-economy, national industrial policy, industry prosperity, hot spots in the capital market stage, different regions of the stock market, and the sustainability of earnings growth of listed companies.

Usually, the pEG of those growth stocks will be higher than 1 or even higher than 2, and investors are willing to give them a high valuation, indicating that the company is likely to maintain rapid growth in performance in the future, and such stocks are prone to exceeding the expected P/E ratio valuation.

When pEG is less than 1, either the market underestimates the value of this stock or the market thinks that its performance growth may be worse than expected. Usually, the pEG of value stocks will be lower than 1 to reflect the expectation of low performance growth. Investors should pay attention to the fact that pEG, like other financial indicators, cannot be used alone, but must be used in combination with other indicators. The most important thing here is the expectation of the company's performance.

Because pEG needs to judge the performance growth of at least three years in the future, instead of only using the profit forecast of the next 12 months, it greatly improves the difficulty of accurate judgment. In fact, only when investors are sure to make more accurate predictions about the performance in the next three years or longer, the use effect of pEG will be reflected, otherwise it will be misleading. In addition, investors can't just look at the company's own pegged exchange rate to confirm whether it is overvalued or undervalued. If the pEG of a company's stock is 12 and the pEG of other companies with similar growth is above 15, then the pEG of this company is already higher than 1, but its value may still be underestimated.

Second: net assets per share

Net assets per share mainly reflect the gold content of shareholders' equity, which is the long-term accumulation of the company's operating results for many years. This is a stock index. No matter how long the company has been established or listed, as long as the net assets are increasing, especially the net assets per share are increasing, it shows that the company is growing. On the contrary, if the company's net assets per share continue to decline, the company's prospects are not good. So the higher the net asset value per share, the better. Generally speaking, the net assets per share is higher than that of 2 yuan, which can be regarded as normal or average.

Third: the price-to-book ratio

P/B ratio refers to the ratio of stock price to net assets per share, and it is also one of the important indicators in stock investment analysis. For investors, according to the standard of price-to-book ratio, the lower the price-to-book ratio, the smaller the risk coefficient. In the bear market, the price-to-book ratio has become one of the preferred stock selection indicators for investors, because the price-to-book ratio can reflect the safety margin of the stock price.

Fourth: undistributed profit per share

Undistributed profit per share refers to the undistributed profit or loss accumulated by the company over the years. It is an important material basis for the company to expand reproduction or distribution in the future. Like net assets per share, it is also a stock index. Undistributed profit per share should be a moderate value, not the higher the better. Undistributed profits accumulated for a long time will definitely depreciate. Because the undistributed profit per share reflects the total accumulated surplus or loss of the company over the years, it can more truly reflect the accumulated book losses of the company over the years.

Fifth: cash flow indicators

Free cash flow and operating cash flow are the most frequently cited cash flow indicators in stock investment. Free cash flow refers to the cash that the company can freely control; Operating cash flow reflects the cash receipts and payments of the main business. When the economy is in recession, companies with abundant cash flow have strong ability to expand through mergers and acquisitions, and their anti-risk coefficient is also high.

Stock-related articles:

★ Market analysis

★ Similarities and differences between stock and fund investment in 2021year

★ Market analysis

★202 1 stock trading skills

★ Basic knowledge of stock index futures

★ Specify several situations in which the transaction cannot be revoked.

★ Buying skills of stock funds

★ What is the principle of fund valuation?

★ What does the fifth gear of stock mean? 202 1

★ Difference between Bank-Securities Link and Bank Transfer