1. The low P/E ratio of China Architecture (stock code 60 1688) is related to the stock price. Because the stock price is relatively low, the price-earnings ratio will be low. The price-earnings ratio is obtained by dividing the stock price by the annual earnings per share (EPS) (the same result can be obtained by dividing the company's market value by the annual profit attributable to shareholders). The stock price depends on market demand, that is, it depends on investors' expectations for the following items in disguise:

(1) Enterprise's performance and future development prospects

(2) Newly launched products or services

(3) Industry prospect.

⑷ Other factors that affect the stock price include the market atmosphere and the boom of emerging industries.

2. P/E ratio is the ratio of price per share to earnings per share. The price-earnings ratio widely discussed in the market usually refers to the static price-earnings ratio, which is usually used as an indicator to compare whether stocks with different prices are overvalued or undervalued. 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. When a company grows rapidly and its future performance is promising, when comparing the investment value of different stocks with P/E ratio, these stocks must belong to the same industry, because the company's earnings per share are close and the comparison is effective.