The Function of P/E Ratio in the Analysis of Investment Value of the Stock Market
Xiang Chen · Journal of Hebei Polytechnic University · 2010
It is a useful way to apply the P/E ratio to conduct the analysis of investment value of the stock market.The study should be based on the comparment between the stock market's overall P/E ratio and historical average P/E ratio,standard P/E ratio,mature market P/E ratio,the stock market's low points P/E ratio,and the number of the low P/E ratio stocks on the market.Meanwile,attention should be paid to the limitation of the method.