P/E ratio is the ratio of market value to net profit of listed companies, and also the ratio of stock price to earnings per share. The result is the same. The relationship between market value and profitability is judged by price-earnings ratio valuation, because it mainly refers to net profit, so it is the main judgment index of profitability valuation. We can make a hypothesis that if a company's market value is 65.438+0 billion yuan, its net profit is 65.438+0 billion yuan, and its P/E ratio is 65.438+00 times.