After the financial crisis in 2008, the global stock market plummeted, and the price-earnings ratio of the US stock market fell to about 15 times. Subsequently, the American stock market ushered in another bull market that experienced 10 years. So far, the current price-earnings ratio of the US stock market has reached more than 20 times. Judging from the P/E ratio of China A-shares, as long as the overall P/E ratio of A-shares is less than 20 times, it proves that it has investment value. A shares began to adjust after the bull market of 20 15. By the end of 20 18, the P/E ratio of A shares was as low as 12.80, which was already at the lowest level in history. After more than three months of ups and downs, as of April 2, 20 19, the P/E ratio of Shanghai Composite Index is 15.92 times, and that of Shenzhen Composite Index is 26.58 times, which is still at the bottom, indicating that A shares still have investment value. Adaptive analysis questions can learn the stocks with the lowest P/E ratio. 27.7 times, enough to show that there is indeed a bubble in the US stock market. Take a look at the Chinese stocks listed in the United States with examples.
(1) Alibaba's share price is currently 180.89 US dollars, while its total market value is currently 467.42 billion US dollars, with a price-earnings ratio of 45.45 times, which is obviously overestimated.
⑵ Let's take a look at Sina shares listed in the United States. Up to now, Sina's share price is $665,438 +0.68, and its P/E ratio is 34.65 times, which is still overvalued.
According to the analysis of the current P/E ratio of American stock market, it is reasonable that the P/E ratio of American stock market is between 15 and 20 times. The US stock market has been in a bull market for ten years. The Dow Jones and Nasdaq indexes are overvalued, and most US stocks are overvalued. The price-earnings ratio of US stocks has now exceeded 20 times, indicating that there is a bubble in the US stock market.