# How did PE calculate

### 5 thoughts on “How did PE calculate”

1. PE refers to the price -earnings ratio of the stock. In the stock market, the price -earnings ratio is usually used to determine the valuation of a stock.
. Dynamic P / E ratio is the indicator of the stock market price. Take the closing price after 3 o'clock per trading day as the first data for calculation. Vanke A closed at 7.27 yuan on Friday.
. The latest data of the latest earnings per share is calculated. Press F10 in the relevant stock interface to find profit forecasts. Vanke A's latest earnings per share is 1.37 yuan.
. Calculation, dynamic P/E ratio (PE) = price per share/yield per share. Vanke A's dynamic PE = 7.27/1.37 = 5.306, after the four houses are 5.31.
Extension information: P/E ratio is the most valuation indicator for individual investors. Looking at the research reports of many brokerage firms, there are almost no predictions for the income per share, so as to obtain the valuation of the P / E ratio. Perhaps it is too much to make investors get used to using it to evaluate a company, which is hidden great risk.
The first, the price -earnings ratio corresponds to the income directly. The higher the income, the lower the price -earnings ratio, and the income of the enterprise is unstable. For enterprises with very stable performance, the use of current price -earnings ratio to evaluate is easy and easy, and for companies with unstable performance, the current price -earnings ratio is extremely unreliable. The current low price -earnings ratio may not mean underestimation. On the contrary The high current price -earnings ratio may not be overvalued;
The second, for a company facing major matters, the current price -earnings ratio or historical average price -earnings ratio is not feasible, but it should be combined with combined Determination of the impact of major events, or the certainty of major events;
third, the price -earnings ratio of some industries is destined to be relatively high, for example, the pharmaceutical industry has a more stable growth profit expectations, the entire entire The industry's price -earnings ratio valuation will be higher than the two industries of financial real estate, while high -tech enterprises are even more;
fourth, industries or enterprises with some explosive growth potential, it is usually meaningful The valuation of P / E ratio is also unsupported.
Fifth, the phenomenon of low price -earnings ratios that appears at a high -speed growth company with extremely high performance is also vigilant. It can be said that for most companies, maintaining a growth rate of more than 30%is extremely extremely extreme. For those who are difficult, should the current price -earnings ratio that are several times the performance of the performance is a little more calm? Smart investors will consider more;
Sixth, for companies that have no reorganization expectations or other major events, adopting a average price -earnings ratio method for more than 10 years to evaluate is a simple and effective method, but the same cannot be enabled, but it is also impossible In this regard, the price -earnings ratio has too much hope;
Seventh, for some companies with great potential assets to increase value, the P / E ratio Law is also not feasible. Assets can achieve corporate asset value value Significantly increased or reduced prices;
It, for many public enterprises, such as railways and highways, they are generally in a relatively low P / E ratio valuation status, because these companies are not growing in good growth. It is not appropriate to compare the high -price earnings ratio of technology stocks with the low price -earnings ratio of public undertaking. The comparison of cross -industry is a big misunderstanding;
ninth. The P / E ratio is also evaluated, and it is more about whether the duration of its loss or whether it will become better or deteriorated.
Reference information: P / E ratio-Baidu 100 Kee

2. PE refers to the interest ratio of stocks, also known as "profit yields". The ratio of this PPO is the ratio of a certain stock market price to profit per share. Therefore, it is also called the stock price yield ratio or market price profit ratio (P / E ratio).
If P/E ratio PE is divided into static price -earnings ratio PE and dynamic P/E ratio PE:
Static PE = stock price/earnings per share
dynamic PE = stock price*total share capital/next year's net profit (need to predict for yourself)
Pucting information:
In the current calculation of the P / E ratio, the more common method is to remove the loss stock first, calculate the price -earnings ratio of all stocks, and calculate the average value of the weighted market value. The problem with this algorithm is that some of the profit -making ratios have a higher earnings ratio, and the average price -earnings ratio obtained in turn is easily affected to form distortion. In addition, there are also the price -earnings ratio and the average arithmetic method, which is not scientific.
For the market with a relatively rapid profit level like my country's stock market, a more reasonable algorithm should be to add the total market value of all stocks, except for the net profit of all listed companies, that is, the total market value ratio. Calculate all weights. Relatively speaking, the latter is conducive to investors' overall judgment of the stock market.
It, because the stock market performance and economic performance fluctuate, and the profitability of listed companies will have a certain degree of sensitivity compared to GDP. Therefore, when the actual economic growth rate exceeds the potential growth rate, the profitability of listed companies may magnify the profit level. The effect is much higher than the growth rate of GDP; when the actual growth rate is lower than the potential growth rate, the reduction of profitability of listed companies often exceed the macroeconomic. Therefore, the price -earnings ratio index is also easy to cause large fluctuations due to economic fluctuations. It is often not accurate to make a valuation judgment with a simple P / E ratio index.
Reference materials: Baidu Encyclopedia-P / E ratio

3. The analysis is as follows
1, PE (price -earnings ratio) = stock price / earnings per share
Among them, the stock price is the price of the company's stock transaction in the current stock market, the income per share = net profit / the number of ordinary stocks.
The stock price can be viewed at any time in the market software; net profit and number of ordinary shares can be viewed from the financial statements.
2. It is necessary to point out that the net profit can be used to use the net profit of the previous year, or the net profit estimated that year can be used.
3, the static price -earnings ratio comes from financial statements, which is relatively objective; dynamic P / E ratio uses estimated net profit, which is more objective, but considers the company's latest development.
Pucting data
The price -earnings ratio to the P / E ratio of different data is of different significance. The current price -earnings ratio uses the profit computing per share in the past four quarters, and the prediction of the P / E ratio can be calculated by the profitability of the past four quarters. It can also be based on the actual profit of the previous quarters and the total calculations of the forecast profit of the next two quarters. The calculation of the relevant concept P / E ratio includes only ordinary stocks and does not include preferred stocks.
The price -earnings ratio can be cited from the price -earnings ratio. This indicator adds the factors of profit growth rate, and most of them are used in high -growth industries and new enterprises.
In P / E ratio (static price -earnings ratio) = Ordinary stock market price per share ÷ common shares per year profit
The molecules in the above formula are the current market price per share. The forecast of the year or years is profitable.
The lower the price -earnings ratio, the representative of investors can purchase stocks at a lower price to get returns. The calculation method of earnings per share is that the company's net profit has been reduced in the past 12 months, except for the total issuance of shares sold by the total issuance.
I assume that the market price of a stock is 24 yuan, and the profit per share in the past 12 months is 3 yuan, then the price -earnings ratio is 24/3 = 8. The stock is regarded as 8 times the price -earnings ratio, that is, every 8 yuan can be shared with a profit of 1 yuan.
If investors calculate the price -earnings ratio, which is mainly used to compare the value of different stocks. Theoretically, the lower the price -earnings ratio of the stock, the more worth the investment. The price -earnings ratio of different industries, different countries, and different times is not reliable. The price -earnings ratio of similar stocks is more practical.
The "common shares per share" in the formula is also called earnings per share, which usually refers to net profit per share. The method of determining the net profit per share is:
1. The comprehensive diluted method. The comprehensive diluted method is to use the annual net profit to remove the total share capital after the issue, and directly draw the net profit per share.
2, the weighted average method. Under the weighted average method, the calculation formula of the net profit per share is: net profit per share = annual net profit/ (total share capital before the issuance the number of public issuance of this public issuance* (12-issuance month)/ 12 repurchase The number of equity* (12-repurchase month)/ 12).
Reference information: Calculation method of Baidu Encyclopedia

4. 1. P/E ratio PE is divided into static price -earnings ratio PE and dynamic P/E ratio PE:

static PE = stock price/earnings per share (EPS) dynamic PE = stock price*total share capital/next year net profit (net profit next year (net profit (next year (net profit (next year (net profit (next year (net profit (next year Need to predict it by yourself).
2.pe refers to the original interest ratio of the stock, also known as "profit yield". The ratio of this PPO is the ratio of a certain stock market price to profit per share. Therefore, it is also called the stock price yield ratio or market price profit ratio (P / E ratio).
The expansion PE investment is Private Equity, referred to as PE. Domestic translation of PE into a narrow equity investment, that is, "private equity investment" refers to an investment method that invests in non -listed equity or listed companies' non -public transaction equity. The source of funds for private equity investment, facing natural persons with risk recognition or an affordable institutional investor investor to raise funds

Reference materials: PE investment_ 百度 百

5. PE (P / E ratio) = stock price / earnings per share
Among them, the stock price is the price of the company's stock transaction in the current stock market, earnings per share = net profit / number of ordinary stocks. The stock price can be viewed at any time in the market software; net profit and ordinary shares can be viewed from the financial statements.
The expansion information

Price Earnings Ratio (P/E Ratio) is also known as "Ben Yimi", "stock price yield ratio" or "market price profit ratio (referred to as abbreviated P / E ratio) "".
If price -earnings ratio is one of the most commonly used indicators to evaluate whether the stock price level is reasonable. The stock price is obtained from the annual earnings per share (EPS) (EPS). To. When calculating, the stock price usually takes the latest closing price, and in terms of EPS, if calculated based on the announcement of the previous year, it is called the historical price -earnings ratio (P/E);
The market average estimation (Consensus Estimates), that is, the institution that tracks the company's performance to collect the predicted average or median value obtained by many analysts. What is a reasonable price -earnings ratio does not have certain criteria.
The price -earnings ratio is the ratio of the market price of a certain stock to profit per share. The market widely talks about the price -earnings ratio usually refers to the static price -earnings ratio, and is usually used as an indicator of whether the stocks of different prices are overestimated or underestimated. It is not always accurate to measure the texture of a company's stock with a price -earnings ratio.
is generally believed that if the price -earnings ratio of a company's stock is too high, the price of the stock is foam and the value is overestimated. When a company grows rapidly and its future performance growth is very optimistic, the investment value of different stocks is compared with different stocks, and these stocks must belong to the same industry, because the company's earnings per share are relatively close at this time, and each other is effective.
The price -earnings ratio is a very valuable stock market pointer. On the one hand, investors often do not think that the profit number calculated strictly in accordance with accounting standards truly reflects the company's profitability on the basis of continuous operation. Therefore, analysts, analysts Often adjust the company's officially announced net profit.
If price -earnings ratio is an important financial indicator that investors must master, also known as the interest ratio, which is the ratio of stock prices in addition to profit per share. The price -earnings ratio reflects that when the profit per share is unchanged, when the dividend rate is 100%and the dividend of the income is not re -investing, how many years of investment can be recovered throughout the dividend.
The price -earnings ratio is high or good? Under normal circumstances, the lower the price -earnings ratio of a stock, the lower the profitability of the market price for the stock, indicating that the shorter the investment recovery period, the smaller the investment risk, and the greater the investment value of the stock; otherwise, the conclusion is the opposite.
The price -earnings ratio is the ratio of the market price of a certain stock to profit per share. The market widely talks about the price -earnings ratio usually refers to the static price -earnings ratio, and is usually used as an indicator of whether the stocks of different prices are overestimated or underestimated.
This factors
The factors that affect the internal value of the P / E ratio are summarized as follows:
1, dividend distribution rate B. Obviously, the dividend payment rate also appears in the molecules and denominator of the P / E ratio formula. Among the molecules, the greater the dividend payment rate, the higher the current dividend level, the greater the price -earnings ratio; however, in the denominator, the greater the dividend payment rate, the lower the dividend growth rate, and the smaller the price -earnings ratio. Therefore, the relationship between P / E ratio and dividend issuance rate is uncertain.
2, risk -free asset yield RF. Because the yield of risk -free assets (usually short -term or long -term national treasury coupons) is an opportunity cost of investors, the minimum return rate that investors expect, risk -free increases, the return on investment required by investors rises, and the increase in discount rates leads to the price -earnings ratio leading to the P / E ratio. decline. Therefore, the relationship between P / E ratio and the yield of risk -free assets is reverse.
3. The expected return of market portfolio assets KM. The higher the expected return of market portfolio assets, the greater the additional income required by investors to bear the average risk of risk -free income, the greater the return on investment required by investors, and the lower the price -earnings ratio. Therefore, the relationship between P / E ratio and market portfolio assets is reversed.
Reference materials: PE. Baidu 100 Keke

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