In the stock market, investors often face an important question: how to accurately assess the value of a stock? The core of this question lies in finding a relatively safe price point to avoid being swayed by various market information. Let us delve into several key valuation indicators to help you make more confident investment decisions.

The Price to Sales ratio (PS) is an important indicator that measures the relationship between a company's market value and its sales revenue. It tells us how much investors need to pay to obtain 1 yuan of the company’s sales revenue. Generally, a lower Price to Sales ratio may indicate higher investment value, but this is not absolute. With the rise of the Sci-Tech Innovation Board and the advancement of the registration system, the importance of the Price to Sales ratio in the domestic stock market is becoming increasingly prominent.

The Price-Earnings Ratio (PE) is one of the most commonly used valuation indicators in the investment field. It reflects the relationship between a company's stock price and its earnings per share, directly reflecting investors' expectations of the company's profitability. The calculation method for the Price-Earnings Ratio is simple and intuitive, based on the company's operating conditions as a fundamental financial indicator.

The price-to-book ratio (PB) measures the company's market value relative to its book value. This metric is particularly useful for evaluating asset-intensive businesses, such as banks and real estate companies. A lower price-to-book ratio may suggest that the stock is undervalued, but it may also reflect investor concerns about the company's future growth prospects.

In practical applications, these valuation indicators are not isolated. Wise investors will consider multiple indicators comprehensively, taking into account industry characteristics, company growth potential, and other factors to assess a company's investment value in full. At the same time, we must also recognize that while these indicators are important, they are only a part of the investment decision-making process. The quality of a company's management, its industry position, and its innovation capabilities—these soft powers—should not be overlooked either.

Overall, mastering these valuation indicators will help investors stay clear-headed in a complex market and make more rational investment decisions. But remember, investing is always an art that requires continuous learning and practice; there are no immutable golden rules. Keeping a close eye on market dynamics and continuously refining your investment philosophy and strategies is the essence of successful investing.