2 thoughts on “How to calculate with the PE valuation method”
Renee
Take Dongda Apai as an example, the company's after -tax profit after tax in 1998 was 0.60 yuan. R n 43/0.60/(1 0.3) = 93.17 (times) the company's industry status, market prospects, and financial conditions. The price-earnings ratio is required to compare the price-earnings ratio as the stock price-the price-earnings ratio converted by bank interest rates. After the seventh interest rate cut in June 1999, my country's current one -year regular deposit interest rate is 2.25 %. 2.25 (income) = 44.44 (times)
Pay content for time limit to check for freenAnswer Hello, I am glad to answer it for you ~ PE refers to the current profit level of the company. How many years can it be fully returned? The computing company is PE = per share price/yield per share. For example, ICBC with 5.35 yuan per share is currently 0.79 yuan per share. It takes 6.77 years to return the book, and the PE is 6.77 times. From the calculation formula of the PE valuation method, we can see that there is no consideration of the company's net assets and the performance growth rate of performance. It only assumes that the enterprise has been operating smoothly like this. So what kind of enterprise meets such conditions? That is a mature enterprise that is already very stable, such as current state -owned banks, home appliance giants, pharmaceutical giants, infrastructure giants and other mature enterprises. It is reasonable to use P / E ratio to evaluate. Under normal circumstances, as long as the company's operation is stable, PE is more reasonable at about 20 times, and it is very cost -effective at about 10 times.
Take Dongda Apai as an example, the company's after -tax profit after tax in 1998 was 0.60 yuan. R n 43/0.60/(1 0.3) = 93.17 (times) the company's industry status, market prospects, and financial conditions.
The price-earnings ratio is required to compare the price-earnings ratio as the stock price-the price-earnings ratio converted by bank interest rates. After the seventh interest rate cut in June 1999, my country's current one -year regular deposit interest rate is 2.25 %. 2.25 (income) = 44.44 (times)
Pay content for time limit to check for freenAnswer Hello, I am glad to answer it for you ~ PE refers to the current profit level of the company. How many years can it be fully returned? The computing company is PE = per share price/yield per share. For example, ICBC with 5.35 yuan per share is currently 0.79 yuan per share. It takes 6.77 years to return the book, and the PE is 6.77 times. From the calculation formula of the PE valuation method, we can see that there is no consideration of the company's net assets and the performance growth rate of performance. It only assumes that the enterprise has been operating smoothly like this. So what kind of enterprise meets such conditions? That is a mature enterprise that is already very stable, such as current state -owned banks, home appliance giants, pharmaceutical giants, infrastructure giants and other mature enterprises. It is reasonable to use P / E ratio to evaluate. Under normal circumstances, as long as the company's operation is stable, PE is more reasonable at about 20 times, and it is very cost -effective at about 10 times.