Second, the price-earnings ratio remains unchanged, the company's profits increase, and the market value becomes larger to make money; If the company's profit remains unchanged, the price-earnings ratio will rise and the market value will also rise, making money; If the company's profit increases and the P/E ratio decreases, whether to make money depends on larger variables; If the company's profit drops and the P/E ratio becomes larger, whether it makes money depends on which variable becomes larger; If the company's profit drops and the price-earnings ratio drops, it will undoubtedly be a loss! The company's profits increase and the price-earnings ratio increases. This is Davis. Double click! The company's profits fell, and the price-earnings ratio fell. It's called Davis double kill! Of these two variables, I think profitability is more important than price-earnings ratio! If we pay attention to profit, we prefer to be defined as value investors!
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First, if we pay attention to the price-earnings ratio, we prefer to be defined as speculators! In my understanding of investment and speculation, the difference is that investment is to make money from enterprises at different stages. Enterprises in different stages are not the same enterprise; Speculation is to earn the price difference of the same enterprise at different prices. So there is an essential difference between investment and speculation. Extended data 1. Market value refers to the total value of issued shares of listed companies calculated at market prices.
Two, the calculation method is the price per stock market multiplied by the total number of issued shares. The total market value of all listed companies in the whole stock market is the total market value of stocks. The face value and market value of stocks are often inconsistent. The stock price can be higher or lower than the face value, but the price of the initial stock issue is generally not lower than the face value.
Third, the stock price mainly depends on the expected dividend, bank interest rate and the relationship between supply and demand in the stock market. The stock market is a volatile market, and the price of the stock market is also fluctuating. The market transaction prices of stocks mainly include: opening price, closing price, highest price and lowest price. The closing price is the most important. It is the basic data for studying and analyzing the stock market and restraining the stock market.