Growth to P/E Ratio 市盈增長率 - Definition

[wong]

GPE is a parameter which gives the Growth to P/E ratio of a stock. It is a commonly used measure of valuation. It is computed from the following formula: GPE = GRT x EY / 100. A value of 0.00 is assigned to stocks in which EY <= 0.00.

GPE (Growth to P/E) is another popular measure of stock valuation. It compares earnings growth rate to P/E ratio. High growth stocks are believed to be able to justify high P/E ratios. A stock is commonly considered to be undervalued when GPE is greater than 1.00 and overvalued when GPE is below 1.00. Unfortunately, this rule of thumb does not take into account the effect of interest rates on P/E ratios. The operative GPE ratio of 1.00 is valid when and only when interest rates equal 10%. For example, if long-term interest rates were at 5.96%, the operative GPE ratio would be 0.36 (5.96*5.96)/100=0.36).

[wong]

市盈增長率GPE (Growth to P/E Ratio):市盈增長率透過計算公司的盈利增長率與市盈率兩者的關係，以衡量股票的平與貴。 當市盈增長率大於 1.00時，股票的價值會被認為是被低估了；當市盈增長率低於 1.00時，股票的價值會被認為是高估了。然而，這並沒有考慮到利率對市盈率的影響。 當且僅當利率等於10％，最有效的市盈增長率為1.00。當目前長期利率為2.37%,最有效的市盈增長率為0.06。