What do you think of stock valuation?
First of all, it depends on the price-earnings ratio of the stock itself, the average price-earnings ratio of the same industry and its ranking in the industry. The lower the P/E ratio, the higher the valuation should be, the more potential it has, and the higher the profit ranking of the industry, the greater the room for growth.
Secondly, it depends on whether the stock itself is a hot concept or a government-supported project. For example, the "Belt and Road" supported by the current national policy and the current hot concept of Xiong 'an. Once it belongs to this kind of stock, it will break through the industry restrictions and follow the concept hype, and the valuation will probably be greatly improved.
Finally, we should also study the total market value of stocks and the sustainability and nature of listed companies' profits. The smaller the total market value, the higher the theoretical valuation, and the better the profitability of listed companies, the more likely they are to be valued.
In short, judging the stock price valuation is not based on the absolute number size, but a process of comprehensive consideration. If you choose stocks with reasonable valuation, the probability of avoiding big downside risks will greatly increase. If you can choose stocks with low valuation, you can follow up carefully and operate steadily.
Risk disclosure: This information does not constitute any investment advice. Investors should not substitute such information for their independent judgment, or make decisions only based on such information. It does not constitute any trading operation and does not guarantee any income. If you operate by yourself, please pay attention to position control and risk control.