There are many ways to buy stocks, and many people like to choose stocks from the perspective of valuation. To choose stocks by valuation, you should choose stocks with undervalued market value. Many investors are not clear about the method of stock valuation. The following is the meaning of underestimating market value compiled by Bian Xiao, hoping to help everyone.
What do you mean by undervalued market value?
Undervaluation means that the stock price is relatively low relative to peers or history. The low here does not mean that the absolute value of the stock price is low, but is judged by the relationship between the stock price and some stock indexes. The main valuation indicators are P/E ratio and P/B ratio, with P/E ratio = share price/earnings per share and P/B ratio = share price/net assets per share. When the P/E ratio or P/B ratio is relatively low, it means that the market value is undervalued.
It should be noted that the underestimation and overestimation of market value are relative to peers and their own historical situation. For example, in the real estate industry, the financing required for its operation is very large, so the debt ratio is often high and the P/B ratio is relatively low. For the food industry, its capital recovery is often faster, and the liabilities required for its operation are usually not high, so the two are meaningless; When comparing with the historical situation, we should also pay attention to the influence of the overall market environment.
What are the cheap cement stocks?
At present, the cheapest stock in the cement sector is Yatai Group, and its share price has fallen to more than two yuan, while the second and third lowest shares are all above three yuan. As for the stock market value, Tasly is the lowest in the cement sector, and the price-earnings ratio is also the lowest in the cement sector. 20% equity of Tasly Group is given away for nothing. Whether it is Jianfeng Group or the concept of placard. At present, the price-earnings ratio is six times and the market value is 3.7 billion. The market value of the largest shareholder is only 600 million, which means that 600 million is the largest shareholder, which is seriously underestimated. The investment value of this stock is still very good.
It can be seen from the announcement of the 20 18 annual report of the cement industry that Conch is expected to grow by 80- 100%, huaxin cement by 139- 159%, Jidong Cement by 188-204%, and Evergreen by/kl.
In terms of performance, cement is one of the cheapest industries in the market. Not only low valuation, but also high dividend yield, good cash flow and excellent financial quality.
Cement is a cyclical industry, such as the cyclical industry with large price fluctuations. When the price in 20 15 is low, the national price of P.O42.5 bulk cement is about 150- 160 yuan/ton, and the peak value in 20 18 is higher than that in 540 yuan/ton. With the price rising so much, cement listed companies are making more and more money. From 2065438 to 2008, the national cement sales volume only increased by about 2%, and the cement demand changed little. The main environmental pressure leads to limited cement production. Without new output, cement prices will remain high.
20 19, the demand for cement is also slowly increasing, and most of the leading cement stocks are doing well. Although the stock price has not risen sharply, it is rising steadily.
Because cement is cyclical, as the market changes, the valuation will be high or low. However, low valuation is not a good reason to buy. Cyclical stocks should be bought at the bottom of the cycle and sold at the top of the cycle. In other words, buy when the poor performance is expensive and sell when the good performance is low.
The cheapest cement stocks can also be said to be low-priced stocks in the stock market. As for whether this stock has investment value, it depends on how investors analyze this stock.
Why is the valuation of cement stocks so low?
At present, the cheapest stock in the cement sector is Yatai Group, and its share price has fallen to more than two yuan, while the second and third lowest shares are all above three yuan. As for the stock market value, Tasly is the lowest in the cement sector, and the price-earnings ratio is also the lowest in the cement sector. 20% equity of Tasly Group is given away for nothing. Whether it is Jianfeng Group or the concept of placard. At present, the price-earnings ratio is six times and the market value is 3.7 billion. The market value of the largest shareholder is only 600 million, which means that 600 million is the largest shareholder, which is seriously underestimated. The investment value of this stock is still very good.
It can be seen from the announcement of the 20 18 annual report of the cement industry that Conch is expected to grow by 80- 100%, huaxin cement by 139- 159%, Jidong Cement by 188-204%, and Evergreen by/kl.