Return on net assets (ROE)= benefits that shareholders can share/money that shareholders can share = net profit/shareholders' equity.

Return on total assets is equal to the product of net income profit rate and asset utilization rate (net income divided by total assets). The average five-year compound growth rate of total assets return rate of global listed banks is 4. 1 1%, which shows that the five-year return rate of total assets of global listed banks continues to improve. Among them, North America (excluding the United States) and Asia-Pacific region are about 65,438+0.5 times higher than the average level of global listed banks, which is consistent with the continuous improvement of their net income profit rate.

Central Asia, Europe and the United States are not only lower than the global average, but also have negative growth, which are -0.9%, -0.9% and -0.49% respectively, indicating that their return on total assets is declining continuously, because their asset utilization rate has negative growth, which may be related to the decline in loan interest rates, securities and investment income and the low growth rate of non-interest income. ?

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Precautions:

In different economic environments, the overall P/E ratio of the market will be different. When the macro economy is booming, the overall P/E ratio will be higher, while when the macro economy is depressed, the P/E ratio will be lower.

The average P/E ratio of different industries will be different. Because the market has great expectations for emerging industries, these industries often enjoy a higher P/E ratio, which is also the reason why the P/E ratio of GEM and SME board is generally higher than that of traditional industries.

Enterprises at different stages of development will also have different reasonable price-earnings ratios. When an enterprise is in a high growth period, it can have a higher P/E ratio. When the enterprise enters maturity, the P/E ratio will gradually drop to a reasonable level, which is in line with the industry average. When an enterprise enters a recession, because investors have no confidence in the future of the company, the P/E ratio will also decrease with the decline of the stock price, so a low P/E ratio is not necessarily a good thing.

Baidu Encyclopedia-P/E ratio

Baidu Encyclopedia-Return on Total Assets