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Relationship between price-earnings ratio and return on net assets
PB is the price-to-book ratio, ROE is the return on net assets, PB= share price/net assets per share, ROE= profit/net assets per share; Here, both PB and ROE are related to net assets per share. Moreover, these two indicators have attracted the attention of many investors when buying and selling stocks.

When it comes to PB and ROE, stock investors should also pay attention to PE (price-earnings ratio), and its calculation formula is PE= share price/profit. From the above we can get PB=PE*ROE. It is difficult to find out what kind of valuation state the stock is in through the formula, and it needs to be judged from all aspects.

In fact, when buying and selling stocks, users need to pay attention to the recent trend of the stock itself and the overall trend of the stock market. Only in this way can we determine whether this stock can be bought. After buying, always pay attention to the change of stock price, and then sell it at a reasonable price.

Users must make good use of their spare money when investing in stocks to avoid losing money in the process of buying and selling, which will affect their normal life. And in the process of buying and selling stocks, we should have a good attitude. Only when investors have a good attitude can they make a correct judgment and make money in stock trading.