Research On The Structure And Application Of Shanghai And Shenzhen A-share Market Price-earning Ratio

In recent years, the use of traditional model the price-earnings ratio in the A-share market appears too broad and too indiscriminate. Correctly judge the level of stock market price-earnings ratio is important, it is not only government financial regulators to develop a reasonable basis for control measures, but also can help the investors to identify risks, select the appropriate investment strategy.PE value is a dimensionless number, does not have its own economic and investment sense, the same price-earnings ratio values imply different company's future growth expectations. There is not an benchmark stock price-earnings ratio for evaluating the stock's reasonableness.This research literature focus on the characteristics of China's stock markets in Shanghai and Shenzhen A-share market price-earnings ratio in-depth research according to the research literature at home and abroad about the PE radio. What's more, this literature reveals the stability of China's stock market price-earnings ratio of the industry and summarize the influencing factors of the company's price-earnings ratio,through the system PE empirical analysis of average price-earnings ratio on the Shanghai and Shenzhen stock market and 300 companies.The text of the article combined the theoretical and empirical research methods. The theory study is focus on the classic price-earnings ratio calculation model and the impact factors of PE ratio.Empirical study with the statistical methods focus on the level of domestic price-earnings ratio of the whole motherboard market research, industry research, and PE level and the relationship between the analysis of all relevant factors to understanding the distribution of price-earnings ratio level.The main statistical methods:correlation, simple linear regression and autoregressive so.Finally, the article gives instructive examples about the use of indicators for the price-earnings ratio. And the introduction of PEG for the price-earnings ratio of defect indicators.So that whole article was more practical.