Valuation refers to the process of evaluating the current value of assets.

Refers to the goods imported from ad valorem tariffs approved according to the tariff collection price or duty-paid price.

And estimate the expected value it can achieve. Valuation is also the embodiment of the value of stocks in the stock market.

If the market price of a stock is 9 yuan, and if the company's operating performance is good, the valuation range is between 30 and 40, indicating that the stock is seriously undervalued in the capital market.

At this time, the risk factor of intervention will be relatively small. We often hear such comments: "This stock is overvalued" and "A shares are very cheap".

2. What is valuation? We know that one of the most basic functions of financial markets is price discovery. When it is implemented in the stock market, it is to price the stocks issued by listed companies, and its core is valuation.

There are many valuation methods, which can predict the annual net cash inflow of listed companies in the future and get the absolute value by discounting it to today, but the common ones are relative valuation, that is, P/E ratio (PE) and P/B ratio (PB).