Research On The Model Of Trade Inwestment Value Based On Price Earning Ratio

In the good background of Chinese stock market, one of the most important problem is how to invest rationally. The general procedure of securities investment is to judge the whole market form first, then to analyze vocation situation, select the vocation that the whole value was underestimated as the aim to invest. Last to chose stocks in the selected vocation through technical analyse. So the judgement of the value of vocation shows important. In the past, most researcher attend stock purchase money, less on vocation research .The variable of price-earning ratio is a very important judgement criterion. So paper does some research on the invest value of vocation base on the average price-earning ratio. Through the research of the influence variables ,find the evaluation model of vocation and direct investor with it.At first the paper introduces primary theories of evaluation model ,then introduce the theories price-earning ratio and the gist why this variable can judge the investment value of the vocation.Second the paper analyse the influence of the index. Then select three vocations (include estate steel and electron organ) as the objects of this research . Through line regression find every vocation's evaluation model.Last the paper make some explore on the use of these models. Intend provide a useful method for investor.