Price-sales Ratio Testing on Taiwan Stock Market

• Main Authors: Guang-ting Zhang, 張光廷
• Other Authors: Te-chung Hu
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/29499455793529526540

碩士 === 國立高雄應用科技大學 === 金融資訊研究所 === 99 === Abstract According to Kenneth Fisher, the U.S. investment guru, the most useful method, “Price Sales Ratio”, is often applied by the investors to discover the stock that is undervalued and under priced. the greatest method to decide on the “super stock” is when its Price Sales Ratio is less than the special value. This approach works excellent in the U.S. stock market. My dissertation is to investigate whether this super stock selecting approach also applies in Taiwanese stock market and its performance comparing to “price-book value” and “sale price ratio”. In my study, the price sales ratio was used as a classification index, and the sample stocks were divided into four groups: less than 0.75, between 0.75 and 1.5, between 1.51 and 3.0., and over 3.0. In order to find out the stock that might have the highest future potential in the market, we calculated the average return and the maximum average return in one year by using the “price sales ratio” method. Also, based on that, we designed operational strategies to validate whether its performance was better than the market index, as well as compared with” price-book value ratio “and ” sales price ratio” of return. The results showed that the stock was selected by price sales ratio method and held a year had better investment rate of return than the market index. However, investment with 20% stop-loss and 50% stop-win was found to have lower operating profit performance than the market index. But, its volatility and the relative risk are low. In addition, we found that there were no significant differences between price sales ratio and price-book value ratio in the performances, and the average return of sales price ratio was slightly lower than the other two. Keywords: price sales ratio, price-book value ratio, sales price ratio, volatility