How to calculate the price-earnings ratio after the delivery of the allotment

About how to calculate the price-earnings ratio after the delivery of the allocation

Knowing that stock investment mainly contains the following elements: investment is regarded as a type of portfolio operation, with the help of risk diversification measures can produce satisfactory average results; individual stock selection should be used in the qualitative analysis and quantitative analysis of the combination of methods. Moreover, it is also important to focus on the future prospects of the problem, I hope you all need to know la. Here to share with you some about the price-earnings ratio after the delivery of the allocation, for your reference.

How to calculate the price-earnings ratio after the delivery

Shenzhen and Shanghai markets are to the current share price and the stock's earnings per share last year as the basis for calculating the price-earnings ratio, which is in line with international practice, but because China's stock market belongs to the emerging markets, investors who mechanically follow the method of calculating the price-earnings ratio of the mature international markets, and thus to judge The stock market is in line with international practice.

Currently, the year-end distribution of listed companies in China is mostly in the form of bonus shares, and China's laws and regulations also stipulate that the company's capital surplus can only be used to increase the share capital and can not be paid out. This determines our listed companies to send bonus shares and transfer shares in a fairly long period of time will exist.

China's listed companies mostly belong to the high-speed growth of the company, the annual increase in performance is often very substantial, and foreign mature market listed companies have passed the stage of high-speed development, capital expansion, enter the maturity period, and now more than dividend payouts, performance growth is stable, the difference between before and after the ex-dividend price is not large, so the above calculation of the price-earnings ratio does not necessarily comply with the conditions of our country. In accordance with the mechanical calculation method, there may be originally should have investment value but because of the high price-earnings ratio and does not have the value of investment; originally should not have investment value, but because of the low price-earnings ratio is wrong to invest

Investment. Some stock review articles in the use of the price-earnings ratio to argue that individual stocks have investment value, the calculation of the price-earnings ratio is also misleading. Therefore, equity expansion should be taken into account when calculating the P/E ratio.

For example, if a company's earnings per share in 2006 were $1, and its year-end distribution was 10 for 10, with a current price of $25, then its price-earnings ratio would be 25 times. But the company after 10 to 10, if the new year 96, calculated on the basis of the original share capital, its earnings increased by 20% over last year, for 1.2 yuan; if the new share capital is only 0.6 yuan, 96 annual price-earnings ratio of 42 times, obviously high. If a simple estimate of the price-earnings ratio, without taking into account the company's year-end or mid-term equity expansion factors, and simply conclude that the stock price-earnings ratio is very low, very investment value, obviously is not considered.

For example: a share of interim results of 0.75 yuan, such as 0.75 yuan twice to calculate the stock's price-earnings ratio (based on the closing price of December 24), for 22.56 times, the price-earnings ratio is low. However, the company made a 10 to 3 ratio share placement in early November '96, and then implemented a 10 to 4 ratio interim bonus on Dec. 31, which means that by the end of 1996, its share capital had expanded by 82%, so its price-earnings ratio should actually be 29.43 times.

The above two different calculations are sufficient to illustrate the importance of the correct calculation of the price-earnings ratio. To look at the P/E ratio from a dynamic perspective requires investors to carefully study the financial reports of listed companies to find out the actual situation and expectations of the company's performance growth, and to calculate the actual P/E ratio that the company should have.

How to use the price-earnings ratio

Currently, the two stock exchanges in Shenzhen and Shanghai publish the price-earnings ratio in the securities newspaper, and the calculation of the price-earnings ratio is: price-earnings ratio = market price of the stock/profit after tax per share (diluted)

According to the provisions of the stock exchanges in Shenzhen and Shanghai, the price-earnings ratio of the profit after tax per share is based on the profit after tax per diluted share, which is calculated as follows.

The price-earnings ratio is one of the tools used by investors to measure and analyze whether a stock has investment value. Generally speaking, stocks with high P/E ratios are more risky, while those with low P/E ratios are less risky and have a relatively high investment value.

Since the price-earnings ratio is only one of the tools to analyze whether a stock has investment value, the price-earnings ratio should be viewed from a dynamic perspective, and should be combined with other tools to analyze the investment value of individual stocks to make specific analytical judgments.

The use of price-earnings ratio to analyze the investment value of stocks, make investment decisions, the following points can be referred to:

1, in the bull market and bear market price-earnings ratio is different.

The bull market price-earnings ratio can be relatively high, the bear market is just the opposite. This is why the price-earnings ratio in the bull market is speculated high still people buy, while the bear market even if the price-earnings ratio of about 10 times still no one asked for the reason.

2, from the point of view of Chinese and foreign stock markets, the mature market price-earnings ratio to be on the low side, and in the rapid growth of the emerging market price-earnings ratio level is higher.

3, from a longer period of time, the price-earnings ratios of listed companies in different industries to maintain a different level of sunrise industry (such as high-tech industry) and with high growth of the performance of the stock price-earnings ratio on the high side of some of the sunset industry's price-earnings ratio on the low side of some.

In short, a comprehensive analysis of listed companies growth, price-earnings ratio, are important tools to find the value of individual stock investment.

Changing hands rate and strong bank stocks

Host: Study the strength of the market and individual stocks, turnover, that is, we often say volume analysis is a very important indicator. We've talked about price-volume relationships, turnover stacking and some other absolute indicators before, and today we're going to talk about a relative indicator, and the most commonly used indicator - the turnover rate.

Host: First give us a definition of the turnover rate, okay?

Guest (Ran Lan): Through long-term tracking and observation of the daily turnover rate of more than 1,000 stocks in the Shenzhen and Shanghai markets, we have found that the daily turnover rate of the vast majority of stocks is between 1% and 25%. The so-called turnover rate refers to the ratio between the cumulative turnover and the tradable volume of a security per unit of time. The higher its value, not only indicates active trading, but also indicates the full extent of the exchange of hands between traders. The rate of change of hands in the market is very important reference for buying and selling, it should be said that this is far more reliable than the technical indicators and technical graphs, if you consider from the point of view of the cost of counterfeiting, although the transaction stamp duty, trading commissions have been significantly reduced, but the larger the turnover of the fees paid is indisputable fact. If the technical indicators on the K chart, graphics, volume of the three elements to choose from, the main force is certainly the most no way to use volume to cheat. Thus, the study of volume and even the rate of change of hands is very helpful in determining the future development of a stock. It is important to be able to distinguish between a high rate of turnover because the main force to ship, or the main force is ready to pull up.

Host: Under what circumstances can we consider a stock to have a high turnover rate?

Guest: Through long-term tracking and observation of the daily turnover rate of more than 1,000 stocks in the Shenzhen and Shanghai markets, we found that the daily turnover rate of the vast majority of stocks is between 1% and 25% (excluding listed IPOs in the first three days of listing), and a large number of stocks have their daily turnover rate concentrated in the range of 1%-20%, with about 70% of the stocks having a daily turnover rate of less than 3%. That said, 3% is an important demarcation; turnover rates below 3% are very common and usually indicate that there is no larger power money operating in them. When a stock's turnover rate is between 3% and 7%, the stock has entered a relatively active state and should be brought to our attention. 7%-10% daily turnover rate is often found in strong stocks, which belong to the highly active state of the stock price movement, generally speaking, these stocks are being, or have been, widely noticed by the market. Daily turnover rate of 10% -15% of the stock if not in the rising historical high price area or see the top of the medium and long term period, it means that the operation of the strong bank stocks, if followed by a significant pullback, in the process of pullback to meet the minimum daily turnover or turnover of 1/3 of the law or the law of 1/10 can be considered appropriate to intervene, when a stock appears more than 15% of the daily turnover rate, if the stock can maintain the In the day of the intensive trading area near the run, it may mean that the stock market has the potential for great upward energy, is the technical characteristics of the super-strong bank stocks, and therefore the market has the opportunity to become the market's biggest dark horse!

Host: What is the general situation of high turnover?

Guest: Generally speaking, the high rate of change of hands is roughly divided into three kinds of situations: relatively high volume suddenly enlarged, the main distribution of the will is very obvious, however, in the high level of the release of the volume to the high level is not an easy thing, generally accompanied by some good introduction, will only be released when the volume of the main force in order to complete the successful distribution of the example of this is a lot of. On the contrary, like Tibet sky road this kind of stock is very good at cheating manor stocks, first fell sharply and then rebounded strongly, and more than the previous finishing platform, attracted to follow the disk and then large-scale shipments. For this kind of stocks to avoid the risk of approach: is to avoid the high price of stocks, avoid the previous has been greatly speculated stocks. 2, new shares, this is a special group, listed at the beginning of the high turnover rate is a very natural thing, and once also staged the myth of the new shares undefeated, however, with the changes in the market, the new shares listed on the market after the high start to go down to become a reality. Obviously has not been high turnover rate must be able to rise to the conclusion. Although the recent listing of new shares of CITIC Securities, Wan Tong high-speed performance is particularly eye-catching, hard to use the high rate of change to conclude that they rose obviously biased, but its high rate of change is also an important factor in support of their rise. 3, the bottom of the release, the price level is not high of the strong stocks, is the focus of our discussion, the high rate of change of the credibility of the high level, indicating that the new funds to intervene in the signs of a more obvious, the future of the rising Space is relatively large, the more the bottom of the full change of hands, the lighter the upward throwing pressure. In addition, the current market is characterized by a local rebound market, high turnover rate is expected to become a strong stock, strong stocks represent the market hot spots. It is necessary to focus on them.