Price-earnings Ratio Of Listed Companies In China Analysis

P/E ratio is one of the important indicators which nowadays are often used in the Capital market theory and the time to study. It is easy to understand, easy calculation, mastered by most people, and often used in the assessment of the value of company stock. They were used to determine the level of stock prices, size and forecast the Company's future profitability. Meanwhile, P/E ratio also becomes the important reference factors for a stock market value judgments, risk judgments and investment decisions and government regulators important basis for the development of relevant policies.There are many factors affecting the level of price-earnings ratio of listed companies, many experts and scholars had studied and analyzed from each side in different directions,for a long-term.Every business, industries go through a life cycle from startup, growth, stability to decline, each industry because of the reality of different stages of development, his prospects for the development of different nature, condition and characteristics of the development, to a large extent, restricts the development prospects of the companies and economic interests, thus it bounds to affect the company's share price and thus affect the stock price-earnings ratio.Therefore, the level of stock price-earnings ratio is a comprehensive reflection of various factors, this is from an empirical perspective on the overall price-earnings ratio of listed companies to analyze factors affecting the level of proof. We found that level of direct factors determine price-earnings ratio of listed companies based on the price per share and earnings per share, P/E ratio further analysis on the changes occurred mainly because of a country's basic national conditions, economic development, financial deepening and investor psychology and other factors.There are also factors such as business management, marketing industry cycle factors and economic and environmental factors,and these factors are in constant flux..The combined effect of these factors and their changes affect different periods of the same market or in the same stocks, the same period of different markets or different stocks, and its price-earnings ratio will have shown a clear and even a huge difference.Currently, with the price-earnings ratio analysis, comparison of the industry has fully demonstrated, and studied the price-earnings ratio of macro and micro factors which will help us further analysis of the causes of the high and low price-earnings ratio of a more comprehensive, rational and objective judgments, thus it can give our securities regulatory agencies, securities companies, investment banks even our investors a more objective advice.