What is?
Today Xiaobian to introduce you in detail.
Dynamic, its calculation formula is the base number, multiplied by the dynamic coefficient, the coefficient is 1/(1+ I)^n, I is the enterprise earnings per share growth ratio, n is the sustainable development of the enterprise duration.
For example, the current stock price is 20 yuan, the earnings per share is 0.38 yuan, the earnings per share in the same period last year is 0.28 yuan, the growth rate is 35%, that is, I =35%, the enterprise will maintain the growth rate for 5 years, that is, n=5, then the dynamic coefficient is 1/(1+35%)^5=22.30%.
Correspondingly, dynamic price-earnings ratio of 11.74 times the ¤Ÿ : 52.63 (static p/e ratio: 20 yuan/RMB 0.38 = 52) x 22.30%.
Compared with the two, the difference is big, believe that ordinary investors will be surprised to see, suddenly realized.
The theory of dynamic P/E tells us a simple and profound truth, that is, investment must choose companies with sustainable growth.
Therefore, it is not hard to understand why the market has become a permanent theme, and some underperforming companies in the substantive restructuring theme to become market dark horses.
The price/earnings ratio widely used in the market usually refers to the static price/earnings ratio, which is the ratio of the current market price divided by the known most recent public earnings per share.
However, as we all know, our listed company earnings disclosure is still a semi-annual report, and the annual report is published in the disclosure of the end of the business period 2 to 3 months later.
This brings a lot of blind spots and misunderstandings to the decision of investors.
Software generally adopts static P/E ratio, software on the market (e.g.) generally adopts dynamic P/E ratio.
Both have their own advantages and disadvantages. Because of the uncertainty of dynamic P/E ratio, static P/E ratio is generally adopted internationally.
When calculating the static P/E ratio, it usually uses the earnings per share of the previous year, but because it may change every year, it is only suitable for companies with long-term stable operation and small changes in earnings to make reference investment.
For dynamic P/E ratio.
One is the second half of the year, the reported earnings simply multiplied by two as the estimated earnings ratio, but many companies have seasonal business is not applicable.
Or take the prediction value of some research institutions as the base value, but sometimes the error is too large.
Performance forecasts are now required to serve as a reference for estimation.
Quite good so according to different types of companies, choose the appropriate dynamic and static price-earnings ratio as an investment value reference.
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