Percentile-the decimal part is counted from the decimal point, the second place on the right is called percentile, or it can be called decimal second place, and the third place on the right is called thousandth.

Chinese name

percentile

Foreign name

Brief introduction of a hundred years

Percentile-Any number containing decimals is counted from the decimal point, the second digit on the right is called percentile, or decimal, and the third digit on the right is called thousandth.

For example, the "2" in (1)0. 123456 is in the percentile.

(2) The "3" in 0.03578 is in the percentile.

Accurate value

To make a multi-digit decimal accurate to one hundredth of a decimal is to keep two decimal places and an approximate value. For example, 3.695 is accurate to 1%, which means 3.70, 5 should be rounded up, 69+ 1 becomes 70, and the last 0 cannot be omitted. The historical percentile of P/E ratio/P/B ratio indicates the position of this P/E ratio/P/B ratio in the whole historical process of the index.

For example, the P/E ratio of CSI 500 is 24.60, and the corresponding historical percentile is 1 1.88%, which means that the P/E ratio of CSI 500 is lower than 24.60 in the days of1.88% in history.

In other words, the greater the percentile value, it means that the current valuation is in a relatively high position in the historical valuation, and we try to choose the one with a low percentile when choosing.

However, depending on the data time you choose, the percentage value may not be accurate. Because we should consider the ranking of the index in history, we should have enough historical data, and it is best to have experienced a round of bulls and bears, not less than 7 years. In addition, the more data the better. At the beginning of the index, the valuation was extremely high. For example, the Shanghai and Shenzhen 300 is based on 65438+February 3, 20041and 1000, and then the percentage of the big bull market in 2007-08 soared to 100%, indicating 07. But the bull market of 20 15 is only 60%+

In fact, the valuation center of A shares is gradually declining. The stock market will basically not repeat the madness of 2007-08, but it does not mean that there will be no bear market. Bull and bear are relative, but the standard is different from that in 2007-08. If we estimate with reference to the past historical valuation, the estimated underestimation area is on the high side, which means that we think that the "underestimation" is not low, so we have to exclude the data of 2007-08. I generally choose the data of 10 year to keep a high margin of safety.