In the process of issuing new shares, the issue price earnings ratio and the equity factor are two aspects of the market discussion. For these two factors, investors should be more cautious, correct, rational analysis and avoid blindness.

Let's first look at the price earnings ratio of the issue. It refers to the ratio of the issue price of the stock to the earnings per share, which can be divided into static issue price earnings ratio and dynamic issue price earnings ratio. The difference between them is whether the earnings per share is based on the past realized earnings or the predicted future earnings. There are many factors that affect the price earnings ratio of issuance, among which the profit expectation is one of the most important factors. The better the profit growth prospect is, the investors are willing to pay a higher price, and the corresponding price earnings ratio is also higher. The stability of profit is another important factor. Generally speaking, the profit volatility of cyclical industries such as steel and shipping is large, and the P / E ratio is relatively low, while that of industries such as consumption, medicine and other industries whose profit is less affected by the economic cycle is relatively high. In addition, the level of corporate governance, the ability of management, dividend policy and other factors will also affect the investors' views on the prospects and stability of profit growth, thus affecting the level of price earnings ratio of stock issuance.

At present, the main underwriter will provide a valuation report for the inquiry institution during the inquiry process of new share issuance, which involves the overall valuation of related industries. It should be noted that the price earnings ratio provided by the lead underwriter may have some subjective judgment or artificial operation space, which may mislead investors. The price earnings ratio of the industry is an important reference index for the pricing of new shares. The companies, underwriters, inquiry institutions and investors all need to draw up an issuance plan, conduct inquiry, pricing or investment analysis based on it. The regulatory authorities also need to use such basic information for daily supervision. In order to comply with and cooperate with the reform of the new share issuance system, China Securities Index company recently published the price earnings ratio of the whole market in Shanghai and Shenzhen. From the perspective of professional institutions, it provides relatively objective and authoritative information for investors, intermediaries and regulatory authorities, further improving the market transparency. Therefore, the majority of investors can find a standard and transparent reference standard, which is helpful to improve their ability of discrimination, reduce the irrational behavior in the market, and protect their legitimate rights and interests.

Let's look at equity. In the current capital market, there is a misunderstanding in some investors' understanding of the equity factor, that is, when judging the investment value of a company, they pay too much attention to the "equity expansion" factor, grasp the theme of "small equity", and think that the smaller the company's equity, the higher its investment value, and the stronger its development ability, while many issuers deliberately narrow down to cater to these investors' investment preferences To issue capital stock, a large proportion of shares will be distributed to increase capital stock after listing, so as to artificially create favorable information and speculation hot spots.

In fact, the hype of "small equity" and "high transfer" brings investors only false prosperity. Because for a company, the most fundamental factor determining its value depends on its profitability and growth, rather than its "equity" size. In other words, the size of equity does not determine the value of the investment, nor does it affect the amount of cash return to investors. For example, the expansion of equity in the secondary market - "high transfer", is essentially the internal structural adjustment of shareholders' equity, which has no substantial impact on the return on net assets, profitability, asset scale, leverage level and industry development trend of the company, and the fundamentals of the company have not changed. Therefore, when investors judge the investment value, they should comprehensively study the company's internal factors such as net assets per share, earnings per share, dividend policy, asset restructuring, and external factors such as the current macroeconomic situation, the future development trend of the company's industry and the securities market situation. On this basis, they should comprehensively analyze the company's investment value, rather than blindly recognize it For "small equity", there will be "great development".