2 thoughts on “How can the stock price -earnings ratio PE be calculated? Is there still room for investment?”

  1. There are two types of P/E ratio indicators of stocks, namely static P/E ratio indicators and dynamic P/E ratio indicators. Stock price/earnings per share, the calculation formula of the dynamic P/E ratio index is the market value of dynamic P/E ratio = the market value of the market value of listed companies/the net profit of the listed company, that is, the dynamic P/E ratio = the net profit of the stock market value/listed company. For example, a listed company A's net profit per share in 2021 is 3 yuan. At present, the stock price per share is 6 yuan, with a total market value of 1.9 million, and a circulating shares of 600,000. 6/3 = 2 times, the dynamic price -earnings ratio is 190/60 = 3.17 times. If investors also have another listed company stock B to compare. After the formula is calculated, the static price -earnings ratio of the stock B obtained by the investor is 5, and the dynamic dynamic is dynamic. The price -earnings ratio is 6, and the price -earnings ratio of stock B is higher than the price -earnings ratio of stock A. For investors, the lower the price of the P / E ratio, the more investment value. It is accounting income and the impact of artificial adjustment. Therefore, when the price -earnings ratio index is made to make value judgment for stocks, the reference will be limited. Investors also need to assist the reference asset -liability ratio and the turnover rate of mobile assets, which is more beneficial.

  2. P / E ratio, PE, can be obtained literally. The ratio of market price and profit. The market price refers to the price of recent transactions on the market. Profit is annual profit, and the announcement announced. Suppose the company announced that the annual income is 0.5 yuan per share. The market price is ten yuan per share, 10 ÷ 0.5 = 20, calculated that the P / E ratio is equal to 20
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