1, P/E ratio
PE is the price-earnings ratio, also called profit rate. Refers to the ratio of the market price of a stock's common stock to its earnings per share. Its calculation formula is:
PE (price-earnings ratio) = price per share/earnings per share
PE links the stock price with the company's profit, reflecting the company's recent performance. If the stock price rises, but the profit of the enterprise does not change or even decline, the P/E ratio will rise. On the other hand, if the stock price falls, and the corporate profits do not change or even fall, then the P/E ratio will decrease.
2. Lead-lead/boron ratio
PB is the price-to-book ratio understood by investors, which refers to the ratio of stock price to net assets per share. Its calculation formula is:
PB (price-to-book ratio) = share price/net assets per share.
3, roe-return on net assets
Return on net assets (ROE) refers to the return on net assets, which is an important indicator to judge the profitability of listed companies, also known as the return on shareholders' equity. In the securities market, the return on net assets has been highly concerned by many investors and all parties. Its calculation formula is:
ROE (return on net assets) = net profit during the reporting period/net assets at the end of the reporting period.
Return on net assets is an important index to measure the internal financial and marketing performance of listed companies. Therefore, analysts also interpret it as the ability to reinvest the company's earnings to generate more income.
4. DCF- Absolute Valuation Method
DCF is a very rigorous valuation method and absolute pricing method-absolute valuation method. If you want to get an accurate DCF, you must have a clear understanding of the future development of the company. The process of obtaining DCF is the process of judging the future development of the company. From this point of view, it is easier to accurately judge the DCF of mature and stable companies. For those companies in the expansion period, it is more difficult to accurately judge their DCF.