This is also the reason why tax exemption is the strongest among the above-mentioned industries.
Many investors are not aware of the logic of early valuation switching in the epidemic market, which leads to optimism about many companies but not able to start in time.
The valuation is not a value
Many people will interpret valuation as value because of the phrase “price fluctuates around value”. Therefore, they think that valuation is a clear number. As long as there is a method to calculate it, they can make a steady profit. Not to lose.
However, in fact, if there is such a number objectively, there must be a way to calculate it. If it can be calculated, the stock price will not fluctuate-if everyone knows that this stock is worth 30 yuan, who will be higher Buy at 30 yuan, who will sell for less than 30 yuan?
Valuation is not an accurate value. It is not only related to investors’ perceptions of performance, but also to investors’ expected returns.
The accurate meaning of valuation refers to the most likely range of stock prices in the future. Part of the money we make comes from the growth of corporate performance, that is, the overall movement of this range, and the other part comes from the stock price within this valuation range. The revenue generated by moving from the lower limit to the upper limit.
And the valuation switch is the combination of these two kinds of money. First, the certainty of performance leads to an overall upward shift in the valuation range, which makes the original reasonable stock price undervalued, and the stock price then returns from undervalued to reasonable.