Market clearance rate | description | Calculation Method

The ratio of the stock price per share to the net assets per share. The Municipal net rate can be used for investment analysis. Generally, stocks with a low market net rate have a high investment value. On the contrary, the investment value is low; however, when determining the value of investment, we should also consider factors such as the current market environment, the company's operating conditions, and profitability.

The calculation method of the market net rate is: the market net rate = (P/BV) that is: Stock market price (P )/ Net assets per share (Book value)

The net equity of a stock is the sum of the company's capital, capital accumulation fund, capital public welfare fund, statutory provident fund, any provident fund, unallocated surplus, and other items. It represents the benefits shared by all shareholders, also known as net assets. The amount of net assets is determined by the company's operating status. The better the company's operating performance, the faster the value-added of its assets, the higher the net value of the stock. Therefore, the more benefits the shareholders have.