S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)

Low PE Ratio Stocks

This page lists companies that have the lowest price-to-earnings ratios (PE Ratios), which is a common financial ratio used for valuing a stock. A stock's PE ratio is calculated by taking its share price and divided by its annual earnings per share. A higher PE ratio means that investors are paying more for each unit of net income, making it more expensive to purchase than a stock with a lower P/E ratio. Some investors often search for stocks with relatively low P/E ratios as a means for identifying the best value stocks that the market has largely passed over. Understanding the price to earnings ratio.

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CompanyCurrent PricePE RatioMarket CapVolumeAverage VolumeIndicator(s)
Liminal BioSciences Inc. stock logo
Liminal BioSciences
0.31$14.62 million10,91836,322Gap Up
Navios Maritime Holdings Inc. stock logo
Navios Maritime
0.35$35.62 million280105,685
Nisun International Enterprise Development Group Co., Ltd stock logo
Nisun International Enterprise Development Group
0.46$21.29 million199,791N/ANews Coverage
High Trading Volume
Jackson Financial Inc. stock logo
Jackson Financial
0.49$2.68 billion11,203946,132Analyst Report
Yiren Digital Ltd. stock logo
Yiren Digital
0.56$89.02 million63,529285,161
Eargo, Inc. stock logo
0.59$70.49 million8,28916.91 million
DAVIDsTEA Inc. stock logo
0.59$33.84 million45,89933,198Upcoming Earnings
Gap Up
Liberty TripAdvisor Holdings, Inc. stock logo
Liberty TripAdvisor
0.62$95.33 million7641.01 millionGap Down
Sunlands Technology Group stock logo
Sunlands Technology Group
0.61$51.09 million22411,939
ZIM Integrated Shipping Services Ltd. stock logo
ZIM Integrated Shipping Services
0.59$3.65 billion108,3585.64 million
ALJ Regional Holdings, Inc. stock logo
ALJ Regional
0.63$62.24 million2217,064
Sinclair Broadcast Group, Inc. stock logo
Sinclair Broadcast Group
0.63$1.55 billion1,189446,820
eFFECTOR Therapeutics, Inc. stock logo
eFFECTOR Therapeutics
0.71$22.33 million65,642606,764Negative News
Globus Maritime Limited stock logo
Globus Maritime
0.76$16.38 million51,484273,678
EuroDry Ltd. stock logo
0.78$39.57 million10059,054News Coverage
Diversified Healthcare Trust stock logo
Diversified Healthcare Trust
0.78$320.42 million4,7911.90 million
Sohu.com Limited stock logo
0.83$678.79 million154,321123,018
BEST Inc. stock logo
0.87$96.20 million210,180156,201Positive News
Gap Up
Allied Esports Entertainment Inc. stock logo
Allied Esports Entertainment
0.92$55.10 million52,135108,747Positive News
Gap Down
AcelRx Pharmaceuticals, Inc. stock logo
AcelRx Pharmaceuticals
0.99$42.12 million206,8474.08 millionGap Up
Draganfly Inc. stock logo
1.05$131.12 million30097,522Gap Down
City Office REIT, Inc. stock logo
City Office REIT
1.12$476.81 million1,508356,302
X Financial stock logo
X Financial
1.13$126.70 million17,50111,591Gap Down
Salem Media Group, Inc. stock logo
Salem Media Group
1.20$59.21 million26,69743,412
Shenandoah Telecommunications stock logo
Shenandoah Telecommunications
1.18$1.05 billion162100,463
Grupo Televisa, S.A.B. stock logo
Grupo Televisa, S.A.B.
1.20$3.47 billion10,4921.34 million
Light & Wonder, Inc. stock logo
Light & Wonder
1.25$4.50 billion845563,739
OppFi Inc. stock logo
1.24$283 million600164,127
Canaan Inc. stock logo
1.32$596.34 million5,5501.54 million
Jiayin Group Inc. stock logo
Jiayin Group
1.33$134.54 million12,31135,823
PFSweb, Inc. stock logo
1.33$206.93 million42542,976
United States Steel Co. stock logo
United States Steel
1.40$5.69 billion134,3949.27 million
ArcelorMittal S.A. stock logo
1.34$20.90 billion51,2352.34 million
Hovnanian Enterprises, Inc. stock logo
Hovnanian Enterprises
1.36$255.18 million2170,466
IRSA Inversiones y Representaciones Sociedad Anónima stock logo
IRSA Inversiones y Representaciones Sociedad Anónima
1.43$277.31 million152,01739,120High Trading Volume
Kenon Holdings Ltd. stock logo
1.43$2.12 billion331,981
Algoma Steel Group Inc. stock logo
Algoma Steel Group
1.45$1.33 billion1,8071.45 million
Ternium S.A. stock logo
1.56$6.00 billion1,432434,690Analyst Report
Navios Maritime Partners L.P. stock logo
Navios Maritime Partners
1.53$762.25 million300163,020
iStar Inc. stock logo
1.53$1.15 billion5,2381.19 million
Castor Maritime Inc. stock logo
Castor Maritime
1.56$117.85 million699,145729,002Positive News
YPF Sociedad Anónima stock logo
YPF Sociedad Anónima
1.78$2.71 billion47,3952.97 million
TransGlobe Energy Co. stock logo
TransGlobe Energy
1.75$217.40 million19,021571,991
Millicom International Cellular S.A. stock logo
Millicom International Cellular
1.65$1.31 billion6,213120,717Gap Down
Omeros Co. stock logo
1.73$336.23 million3,236648,674
Euroseas Ltd. stock logo
1.77$163.88 million135,92375,457
Guild Holdings stock logo
1.79$672.72 million19,8506,519High Trading Volume
Azenta, Inc. stock logo
1.76$3.82 billion888701,249Gap Down
Danaos Co. stock logo
1.83$1.33 billion356231,552News Coverage
Brighthouse Financial, Inc. stock logo
Brighthouse Financial
1.89$3.47 billion1,126416,856
Safe Bulkers, Inc. stock logo
Safe Bulkers
1.94$384.38 million6,670793,998Positive News
TeraWulf Inc. stock logo
1.89$116.30 million1,208329,806Gap Up
WideOpenWest, Inc. stock logo
1.92$1.54 billion1,788393,348
VEON Ltd. stock logo
2.03$710.15 million497733,626
Seanergy Maritime Holdings Corp. stock logo
Seanergy Maritime
1.97$78.59 million12,9542.68 million
Olympic Steel, Inc. stock logo
Olympic Steel
2.04$284.59 million106,19959,860
Oxbridge Re Holdings Limited stock logo
Oxbridge Re
2.05$16.01 million10,0047,541Analyst Report
Gap Up
Intrepid Potash, Inc. stock logo
Intrepid Potash
2.07$591.90 million266382,542
Ryerson Holding Co. stock logo
2.14$1.05 billion633222,680
Alpha and Omega Semiconductor Limited stock logo
Alpha and Omega Semiconductor
2.12$920.38 million2,079403,076
Eagle Bulk Shipping Inc. stock logo
Eagle Bulk Shipping
2.14$566.90 million428382,910
Liberty Global plc stock logo
Liberty Global
2.11$9.28 billion4,2251.12 millionNews Coverage
Positive News
Matson, Inc. stock logo
2.16$2.83 billion675281,586
BlueLinx Holdings Inc. stock logo
2.13$674.56 million907118,369
Companhia Siderúrgica Nacional stock logo
Companhia Siderúrgica Nacional
2.11$3.58 billion179,5534.13 millionUpcoming Earnings
Star Bulk Carriers Corp. stock logo
Star Bulk Carriers
2.19$1.95 billion21,4863.09 millionOptions Volume
News Coverage
Oportun Financial Co. stock logo
Oportun Financial
2.17$164.65 million1,162331,146
Alpha Metallurgical Resources, Inc. stock logo
Alpha Metallurgical Resources
2.12$2.51 billion1,351482,709Gap Down
Laredo Petroleum, Inc. stock logo
Laredo Petroleum
2.25$1.23 billion4,106604,220Analyst Revision
Himax Technologies, Inc. stock logo
Himax Technologies
2.15$960.39 million35,6531.92 million
POSCO Holdings Inc. stock logo
2.14$13.16 billion1,506238,825Upcoming Earnings
Dividend Cut
Gap Down
LexinFintech Holdings Ltd. stock logo
2.18$337.40 million5,436998,651Gap Up
Liberty Global plc stock logo
Liberty Global
2.22$9.74 billion7,0611.66 million
Beazer Homes USA, Inc. stock logo
Beazer Homes USA
2.25$416.20 million824302,140
Party City Holdco Inc. stock logo
Party City Holdco
2.35$263.29 million27,33210.92 millionAnalyst Upgrade
Live Ventures Incorporated stock logo
Live Ventures
2.34$75.40 million8,5174,072High Trading Volume
TSR, Inc. stock logo
2.43$17.93 million3507,218
Retractable Technologies, Inc. stock logo
Retractable Technologies
2.52$75.43 million122,335100,970
Genco Shipping & Trading Limited stock logo
Genco Shipping & Trading
2.44$572.05 million12,5731.19 millionPositive News
iTeos Therapeutics, Inc. stock logo
iTeos Therapeutics
2.52$780.63 million1,006325,215
Advanced Emissions Solutions, Inc. stock logo
Advanced Emissions Solutions
2.42$66.19 million271184,294
Comstock Holding Companies, Inc. stock logo
Comstock Holding Companies
2.46$42.54 million117,240Gap Up
Friedman Industries, Incorporated stock logo
Friedman Industries
4.45$65.96 million42,51514,068News Coverage
High Trading Volume
OptimumBank Holdings, Inc. stock logo
2.48$20.38 million1,16512,739Gap Up
Golden Ocean Group Limited stock logo
Golden Ocean Group
2.48$1.21 billion40,4183.69 million
Silicon Laboratories Inc. stock logo
Silicon Laboratories
2.52$4.13 billion1,379365,979
Pangaea Logistics Solutions, Ltd. stock logo
Pangaea Logistics Solutions
2.47$221.77 million300209,577
GoPro, Inc. stock logo
2.48$887.72 million8,7791.55 million
Grindrod Shipping Holdings Ltd. stock logo
Grindrod Shipping
2.52$451.03 million3,824325,383Gap Down
Woori Financial Group Inc. stock logo
Woori Financial Group
2.49$5.92 billion3753,725
Gerdau S.A. stock logo
2.53$7.96 billion54,94214.32 million
Genworth Financial, Inc. stock logo
Genworth Financial
2.59$2.05 billion5,7782.75 million
Sesen Bio, Inc. stock logo
Sesen Bio
2.58$123.67 million1,4581.05 millionNews Coverage
Global Ship Lease, Inc. stock logo
Global Ship Lease
2.62$668.68 million1,402733,391
Dynagas LNG Partners LP stock logo
Dynagas LNG Partners
2.47$123.05 million106119,043News Coverage
Positive News
Mr. Cooper Group Inc. stock logo
Mr. Cooper Group
2.56$2.92 billion805474,925Options Volume
Banco BBVA Argentina S.A. stock logo
Banco BBVA Argentina
2.63$676.03 million5,492513,708
Cleveland-Cliffs Inc. stock logo
2.66$9.15 billion113,61110.33 million
Warrior Met Coal, Inc. stock logo
Warrior Met Coal
2.57$1.59 billion2,436631,117
Annaly Capital Management, Inc. stock logo
Annaly Capital Management
2.63$10.75 billion193,64721.86 million
What the Price to Earnings (P/E) Ratio Tells Investors and Why That Matters

Understanding how much to pay for a company’s earnings is the difference between price and value

The price-to-earnings (P/E) ratio is arguably the most common financial ratio used to value a stock. A stock’s P/E ratio tells investors how much they are paying for one dollar of a company’s earnings. In this article we’ll take and in-depth look at the P/E ratio including how it’s calculated, how investors should analyze P/E ratio, and why it’s important. The article will also compare the P/E ratio with some other commonly used financial ratios.

What is the Price/Earnings (P/E) Ratio?

The price-to-earnings ratio is a measurement of how much an investor is paying for one dollar of a company’s earnings. When a company has a P/E ratio of 15 investors are paying $15 for every dollar of a company’s earnings.

Value investors use the P/E ratio to determine whether a stock is overvalued or undervalued. The ratio can also reveal how a stock’s value compares with that of the industry average or a benchmark index for that matter.

The two components of the P/E ratio tell investors a story of price versus value. Stock price (the P in the P/E ratio) tells investors how much it will cost them to buy one share of a company’s stock. Earnings per share (the E in the ratio) gives investors an idea of how valuable those shares are.

How Do You Calculate P/E Ratio?

The two components used to calculate the price to earnings ratio are the stock price, which is set by forces of demand and supply in the market, and EPS, or earnings per share over a specific period of time, usually one year.

Here are a couple of examples using stock prices and EPS values as of June 29, 2022:

Dollar General has a share price of $247.65 and in the last four quarters it has delivered a total EPS of $9.75. Its P/E ratio is calculated as follows:

247.65/9.75 = 25.4

Dollar Tree has a share price of $156.01 and a total EPS of $6.57. Its P/E ratio is calculated as follows:

156.01/6.57 = 23.7

It’s that simple. And while a stock’s P/E ratio is readily available to investors, it’s easy for investors to find the information they need. And the math is just as simple as shown above.

How is Trailing P/E Different From Forward P/E?

The price-to-earnings ratio is calculated using earnings per share of the last four quarters, a metric normally referred to as trailing earnings per share. The most commonly displayed P/E ratio is a trailing P/E ratio that means it is based on the most recent four quarters of earnings. This means that in all but one quarter of the year, the P/E ratio reflects not only earnings that are occurring in the current fiscal year but also those that the company delivered in the prior fiscal year.

This is why some investors choose to use a different metric known as the forward P/E ratio. This comes from the company’s guidance. It’s common for company management to issue earnings forecasts for subsequent quarters. Investors and analysts can use these numbers to calculate a forward P/E ratio. This gives investors an idea of how confident a company is in their profit forecast in the next four quarters.

For investors who are looking to take a long position in a company’s stock, the forward P/E ratio may be more valuable than its current P/E ratio. By contrast, a short-term trader may be more interested in the current P/E ratio because they are looking at how to profit in the short term.

Should Investors Avoid Companies With a Negative P/E Ratio?

P/E is typically only calculated for companies that are profitable (i.e., companies with positive earnings). A company that is losing money would have a negative P/E. Negative P/E values are usually listed as N/A (not available) to avoid confusion.

However, a lack of profitability may not be an obstacle for growth-oriented investors. That depends on where a company is at in its business cycle,

What is a Good P/E Ratio?

Any investor or advisor that says they know the answer to this is not being truthful with you. It’s true that you can look at indexes such as the S&P 500 index or the NASDAQ index for guidance. But since these index funds carry stocks from different sectors, it’s not a one-size-fits-all solution.

With that in mind, some investors will look at the average P/E ratio for a specific sector. For example, they can look at the average P/E ratio for the technology sector and then compare that to a specific company they are considering such as Apple or Microsoft.

However, this also fails to take into account the specifics of an individual company. Within a specific sector, one company may trade at an above-average P/E ratio and be worth the price. Another may have an average or below average P/E ratio and still be overvalued.

How to Analyze P/E Ratio

With that in mind, investors can use some broad principles to analyze a company’s P/E ratio.

First, a stock with a lower P/E ratio relative to the industry average will often be a better value when compared to a stock with a higher P/E. This is because a low P/E ratio allows investors to pay less for every dollar on earnings.

However, it’s also important to note that a lower P/E ratio may be indicative of poor current and predicted performance. While an investor will be able to pay less for every dollar of earnings, if the company continues to underperform the company’s earnings and its stock price may continue to fall.

Second, companies with higher P/E are expected to have higher earnings in the future. If the company pays dividends it is usually expected to issue higher dividends.  This expectation of future growth is why investors are willing to pay a premium for the company’s stock.

Why the Price-Earnings Ratio Is Important

Price to earnings ratio is important because it gives clues about key fundamentals of a company such as its future growth prospects, investor confidence, and the amount of risk investors take on at its current price. If a company has a proven track record, then it is more than certain to have a higher P/E, relative to a company with a low P/E.

Companies with robust corporate governance command higher P/E than their peers as good oversight goes a long way in strengthening investor confidence in the stock. High and stable dividend-paying companies also command high P/E in part because it shows fundamental strength in a company’s ability to reward shareholders.

Value investors, who are always looking for bargains in the stock market, will search for stocks that have a low P/E ratio. The lower the metric, the less they have to pay per dollar of earnings. Companies that have a low P/E ratio but are otherwise solid companies can be a good investment because they are currently undervalued but the price is likely to increase in the future.

It is important to look at a company’s P/E in light of industry benchmarks. Industries affected by economic cycles tend to trade at much lower P/E compared to those that aren’t.

What is the Difference Between Price-to-Earnings and Price-to-Book (P/B)?

Price-to-earnings and price-to-book are two commonly used ratios regarding stock value. Price to book ratio is a ratio that compares a company’s market value to book value. Book value refers to the company’s total assets minus total liabilities.

Price to book ratio underscores the value that market participants attach to a company’s equity. Companies command different P/Bs because some companies and industries are more efficient at producing income from their assets than others.

Price to book value differs from price to earnings ratio in the fact that it can be used to value firms with positive book values and negative earnings, i.e., companies that are making losses. P/E is only a useful measure for companies with positive earnings.  However, P/B can be useless when used in companies with few tangible assets in their balance sheets, such as information tech companies that mostly offer services. In addition, the metric can remain negative for long periods should a company that has more debt than assets.

Price to Book ratio is ideal for analyzing stocks in industrials as well as in the financial sector. This is in part because these companies have a stronger link between assets and income generating ability. Industrial companies have assets tied to inventory and property, such as production plants or equipment. Property and loans on the other hand account for a huge chunk of assets owned by financial institutions.

Bottom Line

The bottom line is that the P/E ratio allows you to consider what premium you are paying for a company’s earnings.  It is up to you to decide whether the company’s expected growth warrants the premium at stake. As part of an investor’s due diligence, the P/E ratio should be in combination with other metrics to determine the actual value of a stock prior to investing.

It is also important to note that a company with a high P/E ratio will always be under pressure to live up to market expectations. Investors expect such companies to register continuous earnings growth, and failure to do so always result in a stock price drop. It is for this reason that investors tend to be a little bit cautious when it comes to companies with a high P/E.

Conversely, just because a company has a lower P/E does not mean that its stock is a buy. In this case, it would be wise to do extensive research to determine why the company has a lower P/E before jumping into a trade.  Low P/E at times reflects a lack of growth potential which could make it difficult for an investor to generate significant returns in the long term.

That said, the price to earnings ratio is not the only number worth considering when planning to buy shares. Some other things to look out for include dividend rate, price to book ratio, earnings charts as well as sales figures.

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