In recent days, one? Today, the medical index plummeted by almost 4 points, and PE rose by 0.03. What happened? ? Many people are asking this question. Let me give you my opinion. So, why doesn't PE P/E ratio fall but rise? First of all, let's understand the calculation method of price-earnings ratio, that is, (share price/earnings per share) =PE price-earnings ratio. The lower the stock price, the lower the PE should be. Why not go up instead of down? According to this formula, it must be because earnings per share have increased. Is it reliable to predict the stock price with PE P/E ratio? You can usually learn from it, but you can't just rely on this prediction. So what is the specific situation? Let me share my opinion with you.

First, the calculation method of PE PE is also called price-earnings ratio, which is the valuation of a company. The higher the PE, the higher the valuation. The lower the PE, the lower the valuation. The calculation method of PE is (share price/earnings per share) = price-earnings ratio (PE).

2. Why does PE not fall but rise? Then according to this formula, the medical index plummeted, that is, the stock price fell, so the P/E ratio should go down. Why did it go up? According to this formula, we can know that this is definitely because the earnings per share have increased a lot, which will neutralize or even exceed the impact of the stock price decline.

3. Is it reliable to predict the stock trend with PE? PE P/E ratio can be used as a reference, but it can't be used to predict the stock price. The plate with large growth space usually has a higher P/E ratio. Plates with low growth space usually have low P/E ratio. If there is a low growth space but a high P/E ratio, something is wrong.

The above is my opinion on this issue, which is purely personal and for reference only. If you have different opinions, you can leave a message in the comment area to discuss together. Remember to like and pay attention after reading it.