1. P/E ratio. If the P/E ratio is at a historical low or lower than the internationally recognized average P/E ratio, it can be regarded as status; If the price-earnings ratio is at a historical high, it can be regarded as a high level.
Generally speaking, the reasonable average P/E ratio of the market is between 30 and 40 times, but the coefficients are different among different sectors. The reasonable P/E ratio of steel plate is generally around 10 times, which is the lowest among all plates. The reasonable price-earnings ratio of coal, electricity, nonferrous metals, highways and ports and airports is about 30 times, and the price-earnings ratio of small-cap stocks is relatively high, which can generally be recognized as about 50 times, mainly because they usually have good growth. Therefore, when we evaluate the stock price, we should also appropriately correct the P/E ratio according to the sector where the stock is located.
2. Compare the share prices of stocks of the same industry and type. Below average level can be regarded as status, while above average level can be regarded as high position.
3. Look at the chart. If it is at the bottom of the form and has an upward trend, it can be regarded as a state; After the stock price rises sharply, when the price rises or shrinks or the price level rises, it can be regarded as a high level.
4. Market environment. In the bull market, it is reasonable for stocks with excellent performance and good growth to have a P/E ratio of 30 to 40 times. When the stock price is at this price-earnings ratio level, it can be regarded as a low stock price; In a bear market, the same stock is at a high P/E ratio of 30 to 40 times.
These can be understood slowly. The most important thing in stock trading is to master certain experience and skills, so as to make accurate judgments. Novices don't use Anniu Jiabao's mobile phone to track the cattle people inside when they are not sure, which is much safer. I hope I can help you, and I wish you a happy investment!