1, and it is reasonable for the stock pe to be in the range of 14-20. Stock pe, also known as stock price-earnings ratio, refers to the ratio of stock price to earnings per share during the investigation period of 12 months. In China, stock pe is mainly divided into four ranges: 0- 13 is undervalued, 14-20 is normal and reasonable, 2 1-28 is overvalued, and over 28 is a bubble. Therefore, the higher the pe, the smaller the rate of return, and the smaller the security and reliability. When calculating the price-earnings ratio, the stock price usually takes the latest closing price, while in eps, if it is calculated according to the published eps of the previous year, it is called historical price-earnings ratio; Generally speaking, the eps forecast value used to calculate the estimated P/E ratio adopts the market average forecast, that is, the organization that tracks the company's performance collects the average or median of the forecasts obtained by many analysts. What is a reasonable price-earnings ratio, there is no certain standard. It is not always accurate to measure the texture of a company's stock with price-earnings ratio. It is generally believed that if the price-earnings ratio of a company's stock is too high, then the price of the stock is in a bubble and its value is overvalued.

2. Generally speaking, the price-earnings ratio is between 14-20. When the price-earnings ratio is less than 0, the company's profit is negative; Between 0- 13. , its value is underestimated; 2 1-28, its value is overvalued; Greater than 28; Higher foaming performance. When investors use the price-earnings ratio to judge individual stocks, it should be noted that the price-earnings ratio is not as low as possible, and it is best to underestimate it to a normal level; The price-earnings ratio of different industries is generally different, and the price-earnings ratio of some industries is generally higher, so it is impossible to judge the quality of stocks from this angle alone; At different stages of development, its P/E ratio is also different. For example, a stock's current price-earnings ratio is relatively low, but it is in a recession stage, and investors will not be optimistic about it.

It is generally believed that it is normal to keep the P/E ratio between 20-30, and beyond this range, it is underestimated or overestimated. However, the P/E ratio is not suitable for all types of stocks. P/E ratio is mainly applicable to enterprises with weak periodicity, such as general manufacturing and service industries, but not to loss-making companies and cyclical companies. In addition, the price-earnings ratio of different markets is also different. For example, the P/E ratio of A shares is higher than that of Hong Kong stocks and US stocks, which mainly depends on the economic environment of different markets. When using the P/E ratio, you can't judge the valuation from absolute figures. We compare a stock with its historical price-earnings ratio; In addition, when using the price-earnings ratio, we should compare the price-earnings ratio of individual stocks with the average price-earnings ratio of peers or industries, otherwise it is of little significance.