Empirical Statistical Analysis Of P/E Ratio In China's Stock Market

P/e ratio is one of the most important reference indexes for investors when they choose to invest in stocks.It directly reflects the valuation level of a company.First,the paper discusses the Chinese stock market based on p/e ratio value judgment of the background and significance of the development of China's a-share market,more and more people into the stock market,stock market exists obviously with huge gains,but,at the same time,the stock market risk is bigger,the benefits and risks at the same time,we need to stock in the stock market has A basic value judgment,right to invest in stocks,this article is based on p/e ratio for the standard discusses its value and significance,for the investment decision to provide effective help.First of all,this paper briefly describes the development of the a-share market.It is found that the market value of a-share market is gradually rising at present,but the stock market also experienced great fluctuations in 2018.The reason is that the financial crisis broke out in 2018,which affected the market value of the stock market In 2018 for A shares is wealth destruction,for 2018 years,the economic malaise falling down,financial "deleveraging" policy,sino-us trade friction upgrades,such as the occurrence of the event,A series of liquid explosive impact,makes A shares suffered from the problems we face at home and abroad at the same time,cause a-share investors generally pessimistic mood,overall decline in market valuations,wiping out the scale of gen in recent ten years,up to 14.94 trillion.Then,by reference to foreign literature,and summarizes the theoretical factors affecting p/e ratio and influencing factors,from the perspective of macro factors,we found that the influence factors include:monetary policy,market interest rates,inflation,GDP and the growth rate of investment in fixed assets,etc.,in these macroeconomic factors and the p/e ratio of the stock market to strengthen the relationship.From the perspective of corporate financial factors,the main influencing factors are:capacity growth,profitability,operating capacity,cash flow and liquidity,etc.On the basis of the above,this paper USES the macro factors and financial factors affecting the p/e ratio into the paper analysis,to discuss the impact of macro factors and financial factors on the stock market p/e ratioThen,based on the semi-annual data of enterprises from 1999 to 2018,this paper sorted out a total of 40 annual data and demonstrated the relevant factors affecting the p/e ratio of the stock market through data analysis.Based on the perspective of macroeconomic factors,this paper conducts empirical analysis and verification research on multiple linear regression model of architecture.On the influencing factors of price-earnings ratio when the empirical financial factors,this article selects stepwise regression model,the main reason is that the financial factors affecting p/e ratio is more,using the multivariate linear model may produce multicollinearity,may lead to the result is not accurate,and based on the stepwise regression model can effectively choose the most mainly due to the influence factors of the case,can effectively and provide the most intuitive advice for investorsFinally,based on the theoretical basis and empirical model,this paper draws the following conclusions.First,there are differences between different market sectors and industry p/e ratios.Second,the p/e ratio of the stock market is highly correlated with macro factors and financial factors.Thirdly,different industries are faced with different financial factors,and there are significant differences.Based on the relevant exploration and research in this paper,it is hoped that investors can make rational investment and standardize investment,pay attention to the current macro environment in China and the financial differences in different industries,and make different investments in different industries based on the same financial index standard.They should not blindly follow the trend of investment,but should rationally handle the risks and make the investment returns larger.