For example, according to the current market conditions, Jinfa science and technology in the chemical industry, analysts give a reasonable average price-earnings ratio, such as 10-15 times (if), then Jinfa science and technology's current reasonable valuation of 0.28 (EPS) * 10 - 0.28 * 15 that is, 2.8-4.2 yuan. A market price higher than this is overvalued and vice versa is undervalued.
The key to valuation lies in its reasonable price-earnings ratio criterion, and earnings per share generally varies greatly, so the value area may be very different at different times.
More importantly, the value area is the content of the basic analysis, stock investment analysis is a blend of fundamentals, technical aspects, market aspects, psychological aspects of the system engineering. From one aspect of the analysis alone, can not let you win.
In fact, fundamental analysis helps you to find a relatively good quality of stock, but good stocks are not necessarily bought on the rise.
But long term good stocks have good texture.
In fact, the point now, has been a low, you buy any one ticket, adhere to hold a few years, the return will be quite good. Don't care too much about the market again to 6000 points individual stocks can rise to what position.
As for what you said about the price of $10 or less, a single line of appreciation space, you're right, this idea is right, only the unit price is absolutely low, the gains can be quite large.
I can't recommend for the time being, I have a few good tickets, different people have different operating styles and risk preferences, can't recommend rashly.
Any more questions, you can contact by e-mail: cca2000@126.com,
If the answer is okay, remember to add points oh