PB profit calculation
P/E ratio = market value ÷ net profit, P/E ratio = market value ÷ net assets. The main concern of investors is that if the PEPB quantile is greater than 80%, it means that the risk is greater than the opportunity. Different types of enterprises are suitable for different valuation methods, and enterprises with relatively stable profits can generally compare PE valuation with growth rate; Enterprises such as banks are suitable for using PB valuation. If we strictly abide by PEPE's undervalued value, it is almost impossible to catch up with big bull stocks like Tencent and Baidu. Otherwise, the internet bubble is a bloody lesson. Graham and Buffett have repeatedly warned against buying at high prices. A person with a low education has become a famous rich man through hard work. However, if we look at the people with high academic qualifications, the income is obviously higher than that of those with low academic qualifications, and the practical significance of valuation is also here. This article is mainly pepb content, for reference only.