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What is the unit of P/E ratio?
Calculation method:

There will still be some deviations in the specific calculation of P/E ratio. For example, when calculating the overall P/E ratio of the market, some total market values are simply calculated according to the total share capital ×A-share price, while others are calculated according to (total share capital -B-share number) ×A-share price +B-share number ×B-share price.

Others are calculated according to (total share capital-number of overseas listed shares-number of B shares) ×A share price+number of B shares ×B share price+number of overseas listed shares × overseas share price).

The total market value calculated by these three methods will be different. Because it is not very convenient to obtain the price of overseas listed stocks, we usually calculate it according to a simple method.

There are also some differences in the choice of net profit. Some are based on annual report data, some are calculated by converting quarterly report data into aging data in proportion, and some are calculated according to expected net profit.

Extended data:

When calculating, the stock price usually takes the latest closing price, and if EPS is calculated according to the published EPS of the previous year, it is called historical price-earnings ratio; EPS estimate used to calculate expected P/E ratio.

Generally, consistent estimation is adopted, that is, the average or median of the estimated values obtained by institutions that track the company's performance and collect the predictions of many analysts. What is a reasonable price-earnings ratio, there is no certain standard.

P/E ratio is the ratio of share price 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.

Reference source: Baidu Encyclopedia-P/E ratio