The Empirical Study Of Pharmaceutical Industry Price-earnings Ratio Factors

The pharmaceutical industry is an important industry in the national ecomomy,the position of pharmaceutical companies in the stock market is also very important.Correctly to pricing the listed companies of pharmaceutical is of great significance too.There have a lot of valuation methods, which can be divided into absolute and relative valuation method ,Absolute valuation method is a more extensive application of valuation methods. However, the actual operation absolute valuation method has its own shortcomings,and the accuracy is very limited,so the relative valuation method has been used widely to pricing listed companies of pharmaceutical in practice: and the P/E ratio method is the most widely used method in the relative valuation method.Firstly,this article do some research about the factors affecting the P/E ratio from the traditional stock pricing model,such as growth rate;secondly,do some research about those Special factors,such as ;lastly,do some empirical analysis of the factors that affecting the P/E ratio,and reached a decision model.