PE, that is, the price-profit ratio. P/E ratio refers to the ratio of the market price of a company's stock to earnings per share, which is one of the most basic and important parameters in stock analysis. The higher the PE value, the more optimistic the market is about the company's future profit prospects, and vice versa. PE is often used to measure the valuation level of stocks.

The calculation method of PE is relatively simple, just divide the company's market value by its net profit. For example, if a company's market value is 654.38+00,000 and its net profit is 654.38+00,000, then its PE is 654.38+00. Generally speaking, PE less than 15 is considered as a relatively low valuation, PE between 20 and 30 is considered as a normal valuation, and PE greater than 30 is considered as a high valuation.

PE is a very important indicator in the stock market. Investors can judge the investment value of a stock through PE indicators. When PE is low, it means that the stock valuation is low and the investment value is low; When PE is high, it may mean that the stock has been highly valued by the market and the risk is relatively high. It should be noted that PE is only a reference index and cannot be used as the only basis for stock investment decisions. It is best to analyze the company's fundamentals and industry trends and make more accurate investment decisions.