Abstract: Price-to-earning(P/E)ratio is an important basis for investment valuation.It is observed that  the P/E ratios of China＇s listed banks and security companies are significantly different,though they are both  financial enterprises.This paper studies the impact of macroeconomic variables on P/E ratios.Empirical analysis with the market open data shows that the monthly average P/E ratio of the listed banking industry is negatively correlated with China＇s accumulated value of fiscal revenue and positively correlated with China＇s accumulated value of fiscal expenditure,while the monthly average P/E ratio of the listed security companies is negatively correlated with the supply growth rate of narrow money.

Key words:

Price-to-earning ratio, Macroeconomic variable, Multiple linear regression