Fund valuation is a process of calculating and evaluating the value of fund assets and liabilities according to fair prices, and determining the net asset value and net fund share value. Different platforms have their own valuation methods, and the overall difference is not big.

Fund valuation is a useful reference in the process of investing in funds. Buy when undervalued, sell when overvalued, and make a profit. However, it is not feasible to take fund valuation as the only criterion for fund trading. What should be paid attention to in fund valuation?

We usually judge the valuation of an index by the valuation percentile. The greater the value of the valuation percentile, the higher the valuation, and the position of the current valuation in the historical interval can be reflected by the valuation percentage.

What is important is that the valuation level is different in different time intervals. Intercept different time periods, and the percentage of valuation is different. Therefore, it is reasonable to choose the valuation range to include at least one complete bull-bear market, including both bull market data and bear market data, such as the valuation of the past decade.

Different industries choose different valuation methods because of different periodicity. Strong cyclical industries generally use P/B ratio (market value relative to net assets) for valuation, while weak cyclical industries are more suitable for P/E ratio (market value relative to net profit).

Valuation represents past data, but our investment is indeed the future of assets, and we cannot make investment decisions unilaterally based on valuation.

Valuation can be used as an auxiliary tool for our judgment. After a complete analysis of the industry prospects and profitability, supplemented by valuation as the judgment of admission time.