I think we should not consider the PE in isolation.  We need to consider PE together with its expected rate of increase in profit.

There is a term called PEG ratio = PE / (expected rate of increase in profit).

For a bank with size like HSBC or CITIBANK, a rate of increase in profit of 15% would be a very good performance.

However, for 3328, the latest annouced increase in profit is about 30%.

When comparing the PEG ratio, 3328 might not be more "expensive" than HSBC/CITIBANK.

Finally, the most important consideration is the "rate of increase in profit" and will it last in the future.

引用:

原帖由 Dave1968 於 2006-8-31 01:26 PM 發表


mm....ic...I also want to know that, is "dividend" also a major factor for you to consider this kind of stock?

Some stock valuation methods also state that we can consider dividend instead of earning when calculating the "reasonable value" of the stock.

http://www.moneychimp.com/articles/valuation/stockvalue.htm

I think this is very true, especially under the current accounting system.  Earning may come from re-valuation of properties and a low PE is obtained only because of the re-valuation.  Dividend may reflect the company's performance better.