Between 30-60.
Hong Kong stocks are a relatively mature market, and most investors are value investments, which greatly reduces various irregularities and speculation, thus reducing the valuation of stocks, while the A-share market , speculation accounts for a relatively large proportion, and stock prices are often pushed up by funds. The price-to-earnings ratio is the stock price divided by earnings per share. If the stock price is high, the price-to-earnings ratio will naturally be high. Hong Kong investors have a mature and steady style, and they mainly pursue long-term stable returns such as equity dividends. Few people buy stocks with high valuations, so that the stock valuation will not deviate from its intrinsic value. Hong Kong adopts two-way trading, that is, you can go short or long, which may make the stock price of Hong Kong stocks lower, while the earnings per share of Hong Kong stocks are higher, resulting in a lower price-to-earnings ratio.
The current share price of a Hong Kong-listed company is 120 yuan and the price-to-earnings ratio is 40 times. Then the company's good price-to-earnings ratio is 3 yuan per share. The company's good price-to-earnings ratio is between 30 and 60 yuan.
What is the price-to-earnings ratio
The price-to-earnings ratio is the ratio of the market price per share of a certain stock to the earnings per share. The P/E ratio that is widely discussed in the market usually refers to the static P/E ratio, which is often used as an indicator to compare whether stocks of different prices are overvalued or undervalued. The price-to-earnings ratio is not always accurate when used to measure the quality of a company's stock. It is generally believed that if the price-to-earnings ratio of a company's stock is too high, the stock's price is frothy and its value is overvalued. When a company is growing rapidly and its future performance growth is very promising, when using the P/E ratio to compare the investment value of different stocks, these stocks must belong to the same industry, because at this time the company's earnings per share are relatively close, and comparisons with each other are effective.
The price-to-earnings ratio is an important financial indicator that investors must master. It is also called the price-to-earnings ratio. It is the ratio of the stock price divided by the earnings per share. The P/E ratio reflects how many years our investment can be fully recovered through dividends when earnings per share remain unchanged, when the dividend payout ratio is 100 and the dividends are not reinvested.