The percentage of the company's profit is the profit rate. Annual compound interest rate of long-term investment. Profit is our simplified term, which is actually price profit. Price profit rate is also called market profit rate, stock price profit rate, P/E ratio, P/E ratio, profit rate and cost return rate, also called PAE value. This ratio reflects investors' expectations of the company's future earnings. The higher the ratio, the more optimistic investors are about the stock expectations, and vice versa. The reason is precisely because of investors' high expectations of the company's future earnings, which will lead to a rise in the stock price, and this proportion will increase accordingly. Generally speaking, the ratio of fast-growing companies is relatively high, while the ratio of steady-growing companies is relatively low. According to this ratio, investors can also expect the growth of company profits.
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