EPS: short for earnings per share, which means earnings per share. Also known as after-tax profit per dividend and earnings per share, it refers to the proportion of after-tax profit to total share capital. It is one of the important indexes to measure the value of stock investment, the basic index to analyze the value per share, the important index to comprehensively reflect the profitability of the company, and the ratio of the company's net profit to the number of shares in a certain period. This ratio reflects the after-tax profit created per share. The higher the ratio, the more profits will be created. If the company only has ordinary shares, the earnings per share is the after-tax profit, and the number of shares refers to the number of ordinary shares issued outside. If the company still has preferred shares, it should first deduct the interest allocated to preferred shareholders from the after-tax profits. Dynamic P/E ratio: refers to the dynamic P/E ratio, which is calculated by multiplying the static P/E ratio by the dynamic coefficient, that is,1(1+I) n, where I is the growth ratio of earnings per share of the enterprise and n is the duration of the enterprise's sustainable development. For example, the current share price of listed companies, 20 yuan, earned 0.38 yuan per share, compared with 0.28 yuan in the same period last year, with a growth rate of 35%, that is, I = 35%. The company can maintain this growth rate in the next five years, that is, n = 5 and the dynamic coefficient is1(1+35%) 5. Accordingly, the dynamic P/E ratio is 1 1.6 times? Namely: 52 (static P/E ratio: 20 yuan /0.38 yuan = 52) × 22%? . Compared with the two, the difference is so great that I believe ordinary investors will be surprised and suddenly realize. The theory of dynamic P/E ratio tells us a simple and profound truth, that is, companies with sustainable growth must be chosen to invest in the stock market. DCF valuation: short for discounted cash flow, which means discounted cash flow method. The value of assets is evaluated by the discounted value of cash flows that may be generated in the future.