It is invisible to directly check the P/E ratio of Tian Tian Fund. The Tian Tian Fund's P/E ratio, which is often said, is actually that the index fund of the investment index is affected by the change of the index. Investors can regard the P/E ratio of the corresponding index as the P/E ratio of the index fund. The price-earnings ratio of non-index funds can only be estimated by the top few published every quarter.

What is the price-earnings ratio?

1, P/E or PER, also known as "cost-benefit ratio", "stock price-earnings ratio" or "market price-earnings ratio". P/E ratio refers to the ratio of stock price divided by earnings per share ((EPS)). Or divide the company's market value by the annual profit attributable to shareholders.

2. When calculating, the stock price usually takes the latest closing price, and if EPS is calculated according to the published EPS of the previous year, it is called historical price-earnings ratio; Generally, consistent estimation is used to calculate EPS estimated P/E ratio, that is, the estimated average or median value obtained by the institutions that track the company's performance after collecting the forecasts of many analysts. What is a reasonable price-earnings ratio, there is no certain standard.

3. P/E ratio is the ratio of price per share to earnings per share. The price-earnings ratio widely discussed in the market usually refers to the static price-earnings ratio, which is usually used as an indicator to compare whether stocks with different prices are overvalued or undervalued. It is not always accurate to measure the texture of a company's stock with price-earnings ratio. It is generally believed that if the price-earnings ratio of a company's stock is too high, then the price of the stock is in a bubble and its value is overvalued. When a company grows rapidly and its future performance is promising, when comparing the investment value of different stocks with P/E ratio, these stocks must belong to the same industry, because the company's earnings per share are close and the comparison is effective.

4. P/E ratio is one of the most commonly used indicators to evaluate whether the stock price level is reasonable, and it is a valuable stock market indicator. On the one hand, investors often don't think that the profit figures calculated in strict accordance with accounting standards truly reflect the profitability of the company on the basis of going concern. Therefore, analysts often adjust the company's official net profit by themselves.