Article Directory
turnover rate
The turnover rate, also known as the "turnover rate", refers to the frequency of stock changes in the market within a certain period of time, and is one of the indicators reflecting the liquidity of the stock.
It is one of the most important technical indicators reflecting the activeness of market trading.
Turnover rate = trading volume / tradable share capital × 100%
application
- Between 3% and 7%, the stock enters a relatively active state.
- When the stock price is between 7% and 10%, it is the emergence of strong stocks, and the stock price is highly active.
- 10%-15%, more than 15%, more active in turn.
P/E Ratio
Price-to-earnings ratio (referred to as PE or PER), also known as "price-to-earnings ratio", "price-to-earnings ratio" or "market price-to-earnings ratio (referred to as price-earnings ratio)".
The P/E ratio is the ratio of the stock price divided by the earnings per share (earnings per share, EPS). Or divide the company's market capitalization by the annual profit attributable to shareholders.
The price-to-earnings ratio is one of the most commonly used indicators to assess whether a stock price level is reasonable.
The price-earnings ratio reflects how many years the investment can be fully recovered through dividends under the condition that the earnings per share remain unchanged, when the dividend payout ratio is 100% and the dividends are not reinvested.
Generally speaking, the lower the price-earnings ratio of a stock, the lower the profitability of the market price relative to the stock, indicating that the shorter the investment recovery period, the smaller the investment risk, and the greater the investment value of the stock; otherwise, the conclusion is opposite.
However, there is no certain criterion for what is a reasonable price-earnings ratio, and there will be different criteria for judging it according to different industries and companies.
static price-earnings ratio
Price-earnings ratio = stock price per share / after-tax profit per share, that is, price-earnings ratio = stock price / earnings per share
Dynamic price-earnings ratio
The dynamic price-earnings ratio refers to the price-earnings ratio of the predicted profit for the next year that has not yet been realized.
Dynamic price-earnings ratio = current stock price/predicted value of future earnings per share
P/E Ratio TTM
TTM (Trailing Twelve Months) refers to the last 12 consecutive months.
The price-earnings ratio TTM, also known as the rolling price-earnings ratio, generally refers to the price-earnings ratio within a certain period of investigation (usually 12 consecutive months/4 financial quarters).
the difference
- Static price-earnings ratio: the net income of the previous year as the basis
- Dynamic price-earnings ratio: the net profit forecasted by the research report for this year is used as the basis
- Price-to-earnings ratio TTM: The net income of the most recent 4 consecutive fiscal quarters is used as the basis
volume ratio
The volume ratio is a measure of relative volume. It refers to the ratio of the average trading volume per minute after the stock market opens to the average trading volume per minute in the past 5 trading days.
Volume ratio = (total number of current transactions / current accumulated market opening time (minutes)) / average trading volume per minute in the past 5 days
application
- 1.5-2.5 times is a moderate increase in volume: if the stock price is also in a state of moderate and slow rise, the upward trend is relatively healthy; if the stock price falls, it can be determined that the downward trend is difficult to end in the short term.
- 2.5-5 times, it is an obvious increase in volume: if the stock price breaks through important support or resistance positions accordingly, the probability of an effective breakthrough is quite high.
- 5-10 times, it is violent heavy volume: in the long-term low, there is a violent heavy volume breakthrough, and the follow-up space of the upward trend is huge; such a violent heavy volume occurs in the case of a huge increase, it is worthy of high vigilance.
- More than 10 times, more than 20 times, and more extreme volumes in turn: the meaning of reversal is getting stronger and stronger.
Bibi
Bibi ratio is an indicator to measure the relative strength of buying and selling orders in a certain period of time in financial or securities firm trading operations.
Commission ratio = (Commission fee - Commission commission) / (Commission commission + Commission commission) x 100%
application
- The value of the ratio is from -100% to +100%
- 100% means that all orders are buy orders, and the entrustment ratio of stocks with daily limit is generally 100%
- Limit down is -100%
- When the entrustment ratio is negative, it means that the selling order is greater than the buying order
- When the commission ratio is positive, it means that buying orders are greater than selling orders.
Inner and Outer Disks
Inside order means that the seller sells at the buyer's buying price, and the transaction price is the bid price, indicating that the selling is relatively active.
External offer means that the buyer buys at the seller's selling price, and the transaction price is the asking price, indicating that the buying is relatively active.
If the number of external orders is greater than that of internal orders, it means that buyers are stronger; if the number of inner orders is greater than that of outer orders, it means that sellers are stronger.
Price-to-book ratio
Price-to-book ratio (referred to as PB, PBR) refers to the ratio of the stock price per share to the net assets per share.
Generally speaking, stocks with a lower price-to-book ratio have higher investment value, and on the contrary, the investment value is lower.
Outstanding Shares and Floating Value
Tradable shares refer to the number of shares that can be traded on the exchange among the shares of a listed company. Float value is the market value of outstanding shares.
Corresponding to tradable shares, there are also non-tradable shares. Non-tradable shares mainly refer to state shares and legal person shares that cannot be listed and traded temporarily. With the sound development of China's stock market, non-tradable shares will gradually become history.
Total share capital and total market capitalization
Total share capital, including the sum of the number of shares before the new issue and the number of newly issued shares. The total market value refers to the total value of the stock obtained by multiplying the total number of shares in a certain period of time by the stock price at that time.
The total market capitalization is used to indicate the size of an individual stake or the size of the broader market.
Small and mid caps and large caps
Large, medium and small caps are actually a relative concept. Generally speaking:
- Small-cap stocks with a circulation value below 20 billion;
- The circulation value of 20-50 billion is called mid-cap stocks;
- Large-cap stocks with a circulation value of more than 50 billion;
- A stock with a circulation value of more than 100 billion is called a super large-cap stock;
beta coefficient
The beta coefficient, also known as the beta coefficient, is used to measure the price volatility of an individual stock or stock fund relative to the overall stock market.
The larger the absolute value, the greater the range of change in its earnings relative to the broader market; the smaller the absolute value, the smaller the range of change relative to the broader market. If it is a negative value, it shows that the direction of its change is opposite to that of the broader market.
application
- If the volatility of the net value of individual stocks is smaller than the volatility of the overall market, the β coefficient is less than 1; if β is 0.9, when the market rises by 10%, the stock rises by 9%; when the market falls by 10%, the stock falls by 9%.
- If the fluctuation of the net value of individual stocks is greater than the volatility of the overall market, the β coefficient is greater than 1; if β is 1.1, when the market rises by 10%, the stock rises by 11%; when the market falls by 10%, the stock falls by 11%.
- β=0.5 is a low-risk stock, and β=2.0 is a high-risk stock.
- If it is a negative value, it shows that the direction of its change is opposite to that of the market; it falls when the market rises, and rises when the market falls.
ROE
Return on net assets (referred to as ROE), also known as return on shareholders' equity/return on net worth/return on equity/profit on equity/profit on net assets, is the percentage of net profit and average shareholder's equity, which is the company's after-tax profit divided by The percentage rate obtained from net assets, which reflects the level of return on shareholders' equity, reflects the ability of self-owned capital to obtain net income.
Return on net assets = net profit / net assets
Among them, net profit = after-tax profit + profit distribution; net assets = owner's equity + minority shareholders' equity
The higher the indicator value, the higher the return on investment.
LONG
Return on assets = net profit after tax / total assets, return on assets, also called return on assets, it is an indicator used to measure how much net profit is created per unit of assets.
Return on assets = net profit / average total assets * 100%
The higher the index, the better the asset utilization effect of the enterprise, indicating that the enterprise has achieved good results in increasing income and saving funds, otherwise the opposite is true.