Largest 1H decline since 1970: How to secure our portfolios?
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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:
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!
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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?
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~For the second question, Cici has recorded it! Thank you for your feedback.We will continue to iteratively optimize moomoo's functions to bring a better experience to our mooers~
Winning Trades Invest With Cici OP :
Winning Trades Invest With Cici OP : Thank you for your response.