Shanghai And Shenzhen Stock Price-earnings Ratio Empirical Study

The P/E ratio is one of the most important indexes consulted when we value the stock. So no matter on the theory circle or practice circle, P/E ratio has all got the domestic and international scholar's discussion and research extensively. However, the P/E ratio is not an isolated index, its size is influenced by a lot of factors.This paper according to the domestic and foreign research literature as well as our country stock market's characteristic classifies the influence factor of P/E ratio, and proposed the corresponding supposition. And passes to the analysis of average P/E ratio and 300 company P/E ratio influence factor, have announced the influence factor of the P/E ratio of stock market of our country.At first, the analysis on influence factor of the average P/E ratio, this paper has considered 12 possible influence factors, through analysing, we found that the rate of securitisation, inflation rate, GDP rate of increase and interest rate are factors influencing function to be relatively remarkable to the average P/E ratio.Secondly, the analysis on influence factor of the company P/E ratio, this paper has considered 21 possible influence factors. Through analysing, we found that the average P/E ratio of industry, ROE, expenses rate are the factors influencing function to be relatively remarkable to company P/E ratio; The relations between company P/E ratio and such indexes as ROE, etc are all negative relevant, it is opposite to analyse with the theory, this kind of conclusion that completely contradicts proves the development of the stock market of our country is still at very unripe stage, the phenomenon that the high-quality stock is underestimated is serious, the whole market has even turned around; P/E ratio and net assets factor are in close relations, this includes the price of evaluation on net assets, rentability of the net assets, etc.At the end of this paper, we discuss the conclusions we have gotten, put forward the suggestions of difficult point and some suggestions for further study.