The word "underestimation" must not be generally said to be underestimation or overestimation, it is not only affected by its own PE value, but also directly related to the benchmark.

For example, as of May 30, 20 19, the PE of the Shanghai and Shenzhen 300 Index in the last three months was 1 1.8 (in the same period, the Dow of peripheral US stocks was 19 times), the PE of the Shanghai Composite Index was 13, but the PE of the CSI 500 Index was 26.6. Obviously, among the three, the CSI 500 index is 50.

In the investment research circle, it is generally believed that the CSI 500 is seriously underestimated. This is because, if the time axis is lengthened, from 2007 to 20 19, during this period of 12, the PE valuation of CSI 500 Index is currently at 10%.

Extended data:

In order to judge the valuation of the fund, people can first understand the formula for calculating the net value of the fund, first calculate the net value of the fund according to the formula, and then look at the trend chart of the fund to see what the trend chart of the fund looks like in recent days.

Combined with the trend chart of the fund, people can probably judge whether the valuation of the fund is high or low, and also know whether the fund has certain potential.

The potential of the fund can actually be directly reflected in the chart. At the beginning, the fund has been relatively stable, with ups and downs, which also shows that the fund has certain potential to a certain extent, and everyone can consider buying it.