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.

Fund valuation is the result of data estimation. Different platforms have their own valuation methods, but the overall difference is not big.

In the process of investing in funds, fund valuation is a useful reference. Most investors will choose to buy at a low valuation and sell at a high valuation to make a profit. It is biased to regard fund valuation as the sole criterion of fund trading.

We usually judge the valuation of an index by the valuation percentile. What does the valuation percentile mean?

For example, the valuation percentile of an index is 80%, which means that the valuation of this index is higher than the historical valuation of 90%. 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.

Different industries choose different valuation methods because of different periodicity.

For example, in industries with strong periodicity, we generally use the price-to-book ratio (market value relative to net assets) for valuation, because such industries fluctuate greatly and their profitability fluctuates, but their net assets are relatively stable, such as brokers and banks.

For cyclical industries, it is more suitable to use the method of P/E ratio (market value is greater than net profit), because such industries are less affected by the economic cycle and have strong demand, so their profits are relatively stable, such as consumption and medical care.