(1) Estimate the price-earnings ratio of the company. ⑵ What is the implied long-term growth rate of the company's current P/E ratio?

1. At present, this industry is in the early stage of development, and its P/E ratio is relatively high. As far as I know, one-third of the concept stocks have a P/E ratio of more than 100, and most of the rest have a P/E ratio of more than 45. Due to the lack of in-depth understanding, P/E ratio is one of the most commonly used indicators for stock valuation, and its calculation formula is: P/E ratio = share price/earnings per share. From this formula, the price-earnings ratio is how many times the price per share is the earnings per share. But this is a static view, which fails to grasp the essential connotation of P/E ratio. Just like many investors will have doubts, some companies have a P/E ratio of less than 10, and some companies have a P/E ratio of more than 100. The fundamental reason is that there is a company's future growth potential behind the P/E ratio.

2. The P/E ratio is lower than 65,438+00 times, indicating that investors think that the company has little potential for future growth and little room for development. The P/E ratio is as high as 100 times, which shows that investors believe that the company has great future growth potential and broad development space. However, this is a perceptual and directional cognition. What is the growth rate of 100 times P/E ratio and 10 times P/E ratio has always been a vague cognition, and there is no specific quantitative method. Based on discounted cash flow model and industrial evolution theory, this paper tries to find out what the implied growth rate of different P/E ratios is.

1. price-earnings ratio (P/E or PER for short), also known as "cost-benefit ratio", "stock price-earnings ratio" or "market price-earnings ratio (P/E for short)". P/E ratio refers to the ratio of stock price divided by EPS. Or divide the company's market value by the annual profit attributable to shareholders. When calculating, the stock price usually takes the latest closing price, and if EPS is calculated according to the published EPS of the previous year, it is called historical price-earnings ratio; Generally, consistent estimation is used to calculate EPS estimated P/E ratio, that is, the estimated average or median value obtained by the institutions that track the company's performance after collecting the forecasts of many analysts. What is a reasonable price-earnings ratio, there is no certain standard.

2. The compound annual growth rate is the annual growth rate of an investment in a specific period. The calculation method is the n-th root of the percentage of the total growth rate, where n is equal to the number of years in the relevant period. The formula is: (existing value/basic value) (1/ year)-1. The abbreviation of compound growth rate is CAGR (compound annual growth rate).