Study Of P/E Ratio Standards On The Equity Valuation

In this dissertation,the author made a systematic and detailed analysis of the P/E ratio's characteristics from 1997 to 2008 in China's A-stock market on based of three perspectives of the macro,industry and company.And from the same levels,the author also tided the critical factors which make important effect to the P/E ratio.In addition,the author also described the relationship between two factors of company's growth and controlling shareholder acts and the corporate P/E ratio and improved the original P/E relative valuation method.There are seven parts including six chapters and conclusion in this dissertation.All mentioned above were specified in these parts.the research found:①there has been a long-run equilibrium between the overall P/E ratio and the related macro variables such as GDP,Fixed assets investment,M2,the central bank benchmark one-year real interest rates,CPI,the amount of financing of stock market;②in the short term,as for the overall P/E ratio,the fluctuations of money effectiveness and the amount of financing of stock market are more sensitive than of the central bank benchmark one-year real interest rates and CPI;③at short notice,the overall P/E ratio can self-adjust according to the pre-equilibrium errors;④in china's A-stock market,the P/E ratio between the various industries show a high degree of positive correlation posture,at the same time,there are fundamentals of their close correlation;⑤the growth and controlling shareholder acts have a critical reaction to the corporate P/E ratio.In the process of illustration,the author took the empirical analysis and case analysis as the main methods to study P/E ratio.Based on Co-integration and Granger theory,some regression models were made for forecasting the overall P/E ratio's tendency.