Dynamic model about stock price behavior based on ratio of price-earnings,expectation of investors and supply-demand laws

Directing at the shortcomings of the factors model and the internal value model of stock price,the paper put forward a dynamic model that was based on the internal value of stock,the ratio of price-earnings,the expectation of investors,and the supply-demand laws.The model investigated the influence of the ratio of price-earnings and the expectation of investors on the supply and the demand of the stock market,of which the paper discussed the relationship between the stock price behavior and the investors' expectation of earnings per share,and the investors' judgment of the difference between the actual ones and their held ratios of price-earnings.At the end,the paper concluded that the stock price fluctuates around all investors' held price-earnings ratios under the demand force and the supply force based on their expectation and their judgment mentioned above.