1, PE P/E ratio reflects the relationship between the market price of the company's stock and the company's profitability (earnings per share), and investors pay more attention to the company's stock. What does PE mean? PE refers to the price-earnings ratio, that is, the ratio of the price per share of common stock to the earnings per share of a certain stock, that is, PE (price-earnings ratio) = price per share/earnings per share. The P/E ratio relates the stock price to the profit and reflects the recent performance of the enterprise. If the stock price rises and the profit remains unchanged or even falls, the P/E ratio will rise.
2.PB means "price to book ratio" in Chinese. The P/B ratio reflects the relationship between the company's stock market price and the company's solvency (net assets per share), and the company's creditors are more concerned. Average price-to-book ratio = share price/book value. Among them, book value = total assets-intangible assets-liabilities-preferred stock equity. It can be seen that the so-called book value is the value of the company when it is dissolved and liquidated.
If a company wants to liquidate, it must pay its debts first, and intangible assets will no longer exist. One of the key points of preferred stock is to divide the money first in liquidation, but there is no preferred stock in this stock market. In this way, if the book value is converted into net assets per share, PB is the price-to-book ratio that everyone understands, that is, PB (price-to-book ratio) = share price/net assets per share.
3.EPS refers to earnings per share. Earnings per share, also known as after-tax earnings per dividend and earnings per share, is the basic index to analyze the value of each share. The traditional calculation formula of earnings per share index is: earnings per share = net profit at the end of the period ÷ total share capital at the end of the period. Earnings per share highlights the amount of profit allocated to each stock and is the basis for pricing according to the price-earnings ratio in the stock market.
If a company's net profit is large, but its earnings per share are small, it means that its performance has been diluted too much and the price per share is usually not high. PE refers to the price-earnings ratio of stocks, also called "profit rate". The cost-benefit ratio is the ratio of the common stock price to the earnings per share of a certain stock. So it is also called stock price-earnings ratio or market price-earnings ratio.
These can be understood gradually, and investors had better have some preliminary understanding of the stock market before entering the stock market. At the beginning, you can use A Niu Stock Treasure to simulate stock trading. There are some stock knowledge materials worth learning, and you can also build your own mature stock trading knowledge and experience through the above related knowledge. I hope I can help you, and I wish you a happy investment!