How to tell PE, PB and PS?
We all know it is important to select a good company worth investing in, but is that all?![]()
Sometimes we may find that when we buy the shares of a good company, it does not come with a fair price.![]()
Cici has received some questions from our mooers asking the way to figure out a fair price. And my answer is: stock valuation.![]()
The most important indicators in valuation are:
1. Price-to-Earnings(PE)
2. Price-to-Book(PB)
3. Price-to-Sales(PS)
PE ratio tells how much investors are willing to pay for every dollar of a company's profits.
For companies with unstable earnings, we can take PB ratio to evaluate how much investors are willing to pay for each dollar of a company's assets.
PS ratio is mainly used to evaluate fast-growing companies that have not yet made profits.
A more detailed summary is shown in the picture below：
For different companies, we can use different indicators for valuation. If you want to know more about valuation indicators, click the video link below and get a detailed interpretation!![]()
Cici always stands by for any questions or suggestions, and will answer them as soon as possible~![]()
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Moomoo Learn : Static PE、Dynamic PE and the TTM，which indicator we use more frequently？
Winning Trades : MooMoo Quotes uses acronyms P/E (TTM) and P/E LYR. Is Static PE = P/E LYR?
For Sg market, unlike for US stocks, sadly don't have Financial ESTIMATES under Analysis-tab, I hope you can feedback to provide this for Sg stocks too. So that we can calculate Forward PE which I think you call Dynamic PE.
Forward/Dynamic PE is most relevant but currently I need to hunt around for Sg brokers' reports for their estimates. They don't cover all stocks, so it may not even exist. Then, falling back on P/E (TTM) is better than nothing.
Invest With Cici OP Winning Trades : In Detailed Quotes, we can see P/E TTM and P/E LYR, and LYR means Last Year Ratio, which is the same as the static PE ratio. So Static PE = P/E LYR is right~![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
We will continue to iteratively optimize moomoo's functions to bring a better experience to our mooers~![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
For the second question, Cici has recorded it! Thank you for your feedback.
Feel free to leave your comment anytime needed!
Winning Trades Invest With Cici OP :
Winning Trades Invest With Cici OP : Thank you for your response.