Deepen the core of state-owned enterprise (SOE) reform into each sector and look for large SOEs with low valuations, of which banks are a representative. Look for large-cap blue chips to improve efficiency through SOE reform, and further increase their valuations by boosting operating conditions through improved efficiency."
"Finance is an irreplaceable part of economic transformation and reform, and from overseas experience and historical performance, financial blue chips play a role in reconfiguring resources in economic transformation. Banks can be said to be the leader of the valuation restoration of low valuation blue chips.
Price earnings ratio (Price earnings ratio, that is, P / E ratio), also known as the "principal to benefit ratio", "stock price earnings ratio" or "price earnings ratio (referred to as P/E ratio)". )". The P/E ratio is one of the most commonly used indicators to assess the reasonableness of a stock's price level, and is obtained by dividing the stock price by the annual earnings per share (EPS) (the same result can also be obtained by dividing the market capitalization of the company by the annual profit attributable to shareholders). When calculating the EPS, the share price is usually taken as the latest closing price, and for EPS, if it is calculated based on the published EPS of the previous year, it is called the historical P/E ratio; the EPS estimate used for calculating the estimated P/E ratio is generally the average market estimate (consensus estimates), that is, the average or the median estimate obtained by an organization tracking the performance of a company that collects the forecasts of a number of analysts. The average or median estimate obtained by the organization tracking the company's performance by collecting the forecasts of many analysts. There are no guidelines for what constitutes a reasonable price-to-earnings ratio.
The price-earnings ratio is the ratio of a stock's market price per share to its earnings per share. Widely talked about in the marketplace, the P/E ratio usually refers to a static price-to-earnings ratio, which is often used as an indicator of whether a stock is overvalued or undervalued at different prices. The P/E ratio is not always accurate when used to measure the quality of a company's stock. It is generally accepted that if the P/E ratio of a company's stock is too high, then the stock is priced in a bubble and is overvalued. When comparing the investment value of different stocks using P/E ratios when a company is growing rapidly and future earnings growth is very favorable, these stocks must belong to the same industry because at this point the companies' earnings per share are closer to each other for comparisons to be valid.
The price-to-earnings ratio is a very informative indicator of the stock market, but on the one hand, investors often do not believe that earnings figures calculated in strict accordance with accounting standards are a true reflection of a company's ability to make a profit on a going concern basis, and analysts therefore tend to make their own adjustments to a company's officially announced net income.