Generally speaking, the lower the P/E ratio, the better. P/E ratio equals the share price divided by the annual earnings per share. The average market price-earnings ratio is generally between 10-30 times. In terms of interest, the P/E ratio is not bad, but in fact the investment income is 3.333%, which is probably very low.

Therefore, P/E ratio brokerage stock valuation: PEG may be more appropriate. With the rapid development of China's capital market, the P/E ratio is generally maintained at around 15 ~ 20 times.

And the stock markets of some developing countries in Asia ... this is also a kind of "entry notice". There are two different methods of stock valuation. One is the discounted cash flow method, from which the P/E ratio only increases by 50. 1%. Market participants believe that the reason why the dynamic P/E ratio of A shares has risen a lot is money.

Price-earnings ratio:

P/E ratio is also called P/E ratio, stock P/E ratio or market P/E ratio. P/E ratio is one of the most commonly used indicators to evaluate whether the stock price level is reasonable. Divide the stock price by the annual earnings per share (the market value of a company divided by the annual profits attributable to shareholders can also get the same result).

When calculating, the stock price usually takes the latest closing price, and if EPS is calculated according to the published EPS of the previous year, it is called historical price-earnings ratio; Generally, consistent estimation is used to calculate EPS estimated P/E ratio, that is, the estimated average or median value obtained by the institutions that track the company's performance after collecting the forecasts of many analysts. What is a reasonable price-earnings ratio, there is no certain standard.

P/E ratio is the ratio of share price to earnings per share. The price-earnings ratio widely discussed in the market usually refers to the static price-earnings ratio, which is usually used as an indicator to compare whether stocks with different prices are overvalued or undervalued. It is not always accurate to measure the texture of a company's stock with price-earnings ratio.

It is generally believed that if the price-earnings ratio of a company's stock is too high, then the price of the stock is in a bubble and its value is overvalued. When a company grows rapidly and its future performance is promising, when comparing the investment value of different stocks with P/E ratio, these stocks must belong to the same industry, because the company's earnings per share are close and the comparison is effective.

Reference materials? Baidu encyclopedia p/e ratio