For example, the relatively stable profits all correspond to the valuation of around 1 to 2, and the relatively large changes in profits correspond to higher valuations. For example, the most reasonable valuation of JD.COM is around 1.5, because its sales volume and valuation are relatively matched.
Price-to-sales ratio (PS) is a new concept in the securities market, also known as income multiplier, which refers to the ratio of the price per share of common stock to the sales income per share. PS is stable and reliable, and it is not easy to be manipulated.
Extended data
At present, the market price of a number of stocks in the market is obviously lower than their annual sales income, and many of them are undervalued, which should attract investors' attention. Such as Sichuan Changhong, BOE B and Chen Ming B are such examples.
Example 1: Sichuan Changhong. At present, the overall valuation of Sichuan Changhong's enterprises in the securities market is 7.3/kloc-0.50 billion yuan. The average sales revenue of the company in recent years is about 654.38+0.2 billion yuan. Recently, the company has set a sales target of 654.38+08 billion yuan to 20 billion yuan in 2005. As far as this indicator is concerned, Sichuan Changhong is undoubtedly a stock worthy of high attention.
Example 2: BOE B, valued by the securities market as a whole at HK$ 3.644 billion, and its sales revenue in 2003 reached1165438+800 million yuan; So is Chen Ming B.
The shortcomings of marketing rate mainly include:
1. It cannot reflect the change of cost, which is one of the important factors that affect the cash flow and value of enterprises.
2. It can only be used for comparison in the same industry, and the comparison of marketing rates in different industries is meaningless.
3. At present, there are many affiliated sales of listed companies, and this indicator cannot rule out the influence of affiliated sales.
Denominator's main business income is relatively direct, which avoids the complicated formation process of net profit and greatly improves comparability (limited to companies in the same industry). This indicator is most suitable for some industries with relatively stable gross profit margin, such as public utilities and commodity retail. Most foreign value-oriented fund managers choose stocks such as "price per share/earnings per share 1". If this ratio exceeds 10, it is considered that the risk is too great.