2. Price-earnings ratio &; Understanding of price-to-book ratio.
Temperature is the basis for judging the valuation of the stock market: the higher the temperature, the hotter the stock market, the greater the risk and the smaller the upside; The lower the temperature, the colder the stock market, the smaller the risk and the greater the upside.
Exponential temperature =(PE temperature +PB temperature) /2
The measure to judge whether the index is cheap is valuation, which includes two indicators: P/E ratio and P/B ratio.
1. When the temperature is 20 degrees, it means that the probability that the index valuation is lower than the current valuation in history is only 20%, and the current valuation of the index is low, so it is suitable for buying.
2. When the temperature reaches 80 degrees, it means that historically, the probability that the valuation is lower than the current valuation is as high as 80%, and the current index is overvalued and should be sold.
3. The temperature level reflects the probability of being lower than the current valuation of the index in history.
The lower the>& gt& gt temperature, the smaller the probability of being lower than the current valuation in history, the more undervalued the index, and the greater the probability of rising;
& gt& gt& gt The higher the temperature, the greater the probability that it is lower than the current valuation in history, the more overvalued the index, and the greater the probability of falling.
1. Search for "Pruning Almonds" official website. (Obtain historical data of P/E ratio and P/B ratio)
2. Pruning Index-CSI 300 Index
3. Index Page-Value Analysis. Find PE-TTM, select the data of 10, click Export CSV, and export by day. (data distribution from PE and PB)
(Video to be reviewed)
The service number of Changtou School has a long-term temperature to look at.