1 Private equity investment (PE for short) is an investment behavior of raising funds in the form of private placement, investing in private enterprises, that is, unlisted enterprises, in order to promote the value growth of unlisted enterprises, and finally selling shares and withdrawing through listing, mergers and acquisitions, management buyback, equity swap, etc.
Earnings multiple (P/E ratio) is also called cost-benefit ratio, stock P/E ratio or market P/E ratio. P/E ratio is one of the most commonly used indicators to evaluate whether the stock price level is reasonable, which is obtained by dividing the stock price by the annual earnings per share (EPS).