The Research of P/E,P/B and ROE in China
Park Jun · Industrial Engineering and Engineering Management · 2007
Using Chinese stock market data,the article studies the relation of P/E and P/B to ROE completely.The results show that P/B can well reflect future performance,risk and quality of net asset which are related with each ROE level and it is a good value indicator.And Because of earning management,P/B is non-monotonic function of ROE,it is not a good value indicator in china.