At the request of multiple customer backgrounds, the valuations of the Science and Technology Innovation Board, innovative drugs and carbon neutrality indices have been added this time, but the time for WIND to provide the index valuations of the Science and Technology Innovation Board 50 (December 31, 2019), innovative drugs (starting from April 22, 2019) and carbon neutrality (October 21, 2021) is relatively short, so the valuation quantile reference is not too large.
Many investors want to know about the daily changes in index valuations, but they don't have the tools and professional information database to do so. In order to give you a better understanding of the changes of the corresponding indices in a longer period, we select the data of the SSE 50, CSI 300, CSI 500, CSI 100, CSI Dividend and other indices for 10 years to calculate the valuation quantile. The valuation time of other indices is calculated by selecting the earliest valuation data in the WIND database, so that the data span is increased compared with the previous valuation quantile, and the level of the historical valuation quantile of the index can be better judged.
Valuation table of major A-share indices as of April 17, 2024
Note: The data comes from Wind Information, and the quantile of PE is the quantile where the latest PE is located in ascending order in the statistical interval, quantile = current valuation ranking/total historical valuation, the smaller the value, the lower the valuation level during this period;
The increase of the main A-share index on April 17, 2024
How to look at the data table, a simple summary can be several ways:
1. Momentum strategy.
Combined with today's gains, one-week gains, and the rise and fall of the past month, which index has risen more indicates that it is a hot spot in the near future.
2. Reversal strategy. Combined with the rise and fall of the past quarter and the past year, which index has fallen more, indicating that it is not a hot spot in the recent market, if you want to chase the hot spot up, there is a possibility of industry rotation, just ambush those indexes that have risen less or fallen more in recent years, these industries have suffered a blow before abandoning all the larger declines, and if the market hot spot rotation is possible, there may be investment opportunities again.
3. Valuation strategy. If the market is looking for value stocks, you can choose an index with low PE.
4. PE quantile. You can choose an index with a low PE score for regular investment or medium and long-term investment, but because some indices do not have a long time span, the PE quantile of some indices may not have much reference value, so they should be combined with other indicators for reference.
5. You have to observe the current market environment, (1) The market environment is strong and strong, and you can use the momentum effect to find the industry or index with good recent gains from the valuation table to chase the strong industry index. (2) There are more opportunities for the rotation of market sectors, and you can find more declines in the early stage through the valuation table, which may rotate funds to the sector. (3) If the market style likes stocks with low valuations or high dividends, you can use the valuation table to find PE or index funds with higher dividend yields to invest in. (4) If the market likes growth indexes, you can find indices with higher valuations and smaller average market capitalization of individual stocks.
6. In short, indicators are not omnipotent, but only help you as an investment reference, the most important thing is your understanding of the market, the judgment of the market. Of course, if it is a sector index, the performance fundamentals of the industry are more critical.
Source: Net Worth Valuation Broadcast