Valuable investment in stocks means that the company's fundamentals are good, its profitability is stable, and its industrial development is in an upward cycle. Investing in such stocks can achieve good investment returns in 1-3 years or an economic cycle. We can judge the investment value of listed companies from the following indicators.

1 low price and low position. Value investment must choose those stocks with low prices. If the stock price has experienced a long-term sharp rise and reached a historical high, even if its profitability is strong, the risk at this time is far greater than the investment value. For example, in Kweichow Moutai, after a wave of adjustment in the second half of 20 13, it continued to rise for four years, with an increase of 1055% and the highest share price of 792.5 yuan. At this time, the risks involved far outweigh the benefits.

② Low P/E ratio. P/E ratio is a direct reflection of a company's profitability. The lower the P/E ratio, the higher the investment value of the company. But when using the P/E ratio, we'd better choose the rolling P/E ratio (TTM) which can reflect the latest operating conditions of the company.

③ High gross profit margin. This financial indicator is often ignored by everyone. In fact, gross profit margin is a core indicator to analyze the profitability of a company. Gross profit margin is the source of company profits, and companies with high gross profit margin have strong market competitiveness.

(4) High return on assets. This financial indicator reflects the growth of the company, but it should be noted that the return on equity should not be too high, because the high return on equity is unsustainable, and it is usually appropriate to keep it at 4%- 10%.