Under the current situation of China stock market, it is for reference only. As long as the net assets are guaranteed, the stock of the enterprise will not become ST.
Net assets and stock prices
The net assets of a stock is the actual amount of assets contained in each share of a listed company, also known as the book value or net value of the stock, and refers to the asset value contained in the stock calculated by accounting methods. It marks the economic strength of listed companies, because the operation of any enterprise is based on net assets. If the enterprise has too much debt and less net assets, it means that most of the operating results will be used to pay off debts; If there is too much debt, the enterprise will face the danger of bankruptcy.
The net assets per share determine the operating strength and performance of listed companies, and the net assets per share have a decisive influence on the stock price.
There is no fixed formula for the relationship between stock price and net assets per share.
Because in addition to net assets, the management level, technical equipment, market share and external image of products will all have an impact on the final operating efficiency of enterprises, and the impact of net assets on stock prices mainly comes from the law of average profit rate.
Due to the law of average profit rate, the return on net assets of enterprises will fluctuate at an average level. For listed companies, due to strict examination, flexible management mechanism and high management level, their profitability is generally higher than that of ordinary enterprises.
For example, in recent years, the average profit rate of enterprises in China is about 10%, while the average return on equity of listed companies is 16% in 1994 and 13.5% in 1995. The macro-economy is tightening, and the operating income of industrial enterprises is low.
The research shows that the average return on equity of listed companies in various countries is generally higher than the local average investment profit rate, but it will not exceed the range of 150%.
Therefore, only when the average stock price does not exceed 65438+ 0.5 times of net assets per share can the income from investing in the stock market be equivalent to the average value of bank savings or other investments. When the stock price exceeds 0.5 times the average net asset value of listed companies, the income from buying stocks is not as good as other investments.
The above conclusions are relative to the overall average level of the stock market and do not apply to one or a few listed companies. If a listed company has outstanding management level, high market share and long-term stability, advanced production means and technical equipment, it can certainly look up to its share price, but it cannot exceed three times its net assets. According to the statistical data of 1994, only two listed companies have a return on equity of more than 36%, and less than 1% of them are more than three times the average level, and the same is true of 1995.
The lower limit of the stock price can also be determined by the net asset content. As long as the business scope of listed companies does not belong to industries restricted by national policies or sunset industries, it is worthwhile to buy such stocks when their share prices fall below their net assets. When the stock price falls below the net asset content, listed companies are faced with the problem of being acquired and merged. For investors, instead of using the same funds to build a company of the same size as this listed company, it is better to buy it in the stock market. It not only saves a lot of pre-project work, such as declaration, selection and feasibility study, but also saves construction time by purchasing ready-made listed companies, and listed companies also have ready-made employees and sales networks to use. After a listed company is merged, the acquiring enterprise can reorganize its production, such as adjusting management personnel and product structure, so as to quickly improve its operating efficiency. From this, it can be considered that the lowest price of a stock can be set at more than 80% of its net assets per share.
For rational investors, the average price of buying stocks can be controlled between 80% and 150% of the average net asset value, namely:
0.8 × average net assets per share