If the price-earnings ratio is 20 times, then its return on investment is 5%.

If the price-earnings ratio is 20 times, then its return on investment is 5%. The calculation method of P/E ratio is the stock price/earnings per share, that is, the annual earnings per share of the stock. Therefore, it is understood as: for example, if the stock price is 100 and the earnings per share are 5 yuan, then 100/5 can be understood as, according to the current annual earnings, if all the earnings of the stock are distributed, 100/5 = later. You can get a dividend return of 65,438+000 yuan of the original investment, which means that after 20 years, your investment income is 65,438+000%, so the corresponding annual income is 5% on average. When calculating and understanding, the P/E ratio is considered as the number of years you need to recover the original investment, so the reciprocal of P/E ratio is the annual return on investment. Of course, the premise of these existence is that the earnings per share of the stock must be used for dividends, and the 20% interest tax is not counted. Moreover, the earnings per share of many companies are often floating and not so fixed. If the earnings per share of the company you buy grows every year, it is obvious that you can recover all your investment in less than 20 years, which is why you sometimes value growth.

The return on stock investment with a price-earnings ratio of 20 times is 5%. How is this worked out? The meaning of 20 times P/E ratio is to invest in stocks with 20 times P/E ratio, and the cost can be recovered in 20 years, with an average annual return of 5%.

The correlation calculation of return on investment and price-earnings ratio (PIPE) Your question is not clear.

What year is earnings per share in 0.2 yuan?

Private investment is generally calculated by expected rate of return, but there is no information in 2009.

Usually PIPE has a lock-up period and a discount, so I won't talk about it here.

I only know the earnings per share of 20 10, but I don't know the average market price-earnings ratio at that time, so I can't calculate the forecast.

Moreover, only by knowing the estimated transaction volume at that time can we know how long it will take to cash out.

I don't know how to calculate IRR in time

This question is too theoretical. Just a self-righteous person to test you.

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1, 0.2 yuan is the financial data at the end of 2009. = => Buy at 5 times the expected P/E ratio in 2009.

2. If the lock-up period is 1 year = = "20 1 1 to start selling, it will take 20 1 1 year to get a return. You should know the forecast P/E ratio of 20 1 1.

3. Does the discount mean the discount of the current market price? Or say? = = = "Yes, what was the stock market price at the end of 2009? 1 yuan should be lower than the market price.

4. Suppose the average P/E ratio of this industry in 20 10 years is 10 times = = "Theoretically, the price of 6 yuan (0.6 * 10) in/kloc-0 years is six times that of the investment in 2009, and the return is 500%.

5. How to estimate the transaction volume? Isn't IRR an internal rate of return? = = Generally, there is an average daily turnover. If it is too small, then 1 00000 may not be sold1year, and the exit time directly affects IRR (related to time).

Return on investment, if the annual interest rate is negative, that is, at a loss, then how negative is its return on investment. For example, this year's 100 yuan will become 90 yuan next year. The annual return on investment is: 90=( 1+r)* 100, which means the return on investment is-10%.

Is the reciprocal of P/E ratio the return on investment?

P/E ratio is the ratio of share price to earnings per share. Return on investment (ROI)= annual profit or average annual profit/total investment × 100%. As can be seen from the formula, enterprises can improve profit margins by reducing sales costs; Improve the efficiency of asset utilization to improve the return on investment. The advantage of return on investment (ROI) lies in its simple calculation. Return on investment (ROI) is usually time-sensitive-the return is usually based on a specific year.

Without considering the non-recurring gains and losses, the reciprocal of P/E ratio can be considered as the return on investment.

How is the return on investment of commercial real estate calculated? Several materials that general developers must consider when determining the return on investment in commercial real estate;

1. Loan interest rate: currently above 6%.

2. Price coefficient: At present, the average annual growth rate is 2-3%.

3. Risk coefficient: generally not lower than the loan interest rate, temporarily 6%.

4. Reduce interest rates:

It is the return on investment used in the pricing analysis of commercial property income method, and must include the influence of loan interest rate, price coefficient and risk coefficient on the return on investment.

The first three items add up to 14~ 15%. If investors borrow money to buy shops, they can't escape the rising loan interest rate every year. (If it is all its own capital, it can be calculated at an annual interest rate of 2%. )

If the risk coefficient is zero, the annual return on investment of 10% earns little. If the business is bad and the market is depressed, the rent will fall instead of rising.

5. The loan interest rate and price coefficient are changing year by year, mostly rising and dynamic;

6. The risk coefficient is related to the dynamic change of the investment market, which mainly depends on the rise and fall of the housing market and the desire of investors, just like stock trading.

If the return of 1 is 2, the return on investment is 100%. If the return is 100, what is the return on investment? ( 100- 1)/ 1 * 100% = 9900%

How to calculate the return on investment return on investment, as the name implies, return on investment.

For the company, the return here refers to the realized net profit, and the investment refers to the total assets investment (including the funds invested in equity financing and debt financing). Namely: return on investment = net profit/average total assets

For a project, it is the return on investment = net project recovery/net project investment.

For a commercial investment tool, it is the return on investment = (sell-buy)/buy.

For enterprises that charge rent, the return on investment = annual rental income/selling price.

There are countless examples, all of which are understood from the most fundamental literal meaning.