Low PE Ratio Stocks

This page lists companies that have unusually low 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. Value investors often search for stocks with relatively low P/E ratios as a means for identifying cheaper stocks that the market has largely passed over. Understanding the price to earnings ratio.

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CompanyCurrent PricePE RatioMarket CapVolumeAverage VolumeIndicator(s)
IRSA Propiedades Comerciales logo
IRCP
IRSA Propiedades Comerciales
$2.56
-2.3%
0.21$80.65 million1,249126,124Ex-Dividend
Short Interest Decrease
Positive News
Gap Down
Summit Midstream Partners logo
SMLP
Summit Midstream Partners
$37.99
-1.2%
0.59$256.24 million24,21066,945Upcoming Earnings
Short Interest Increase
News Coverage
Apria logo
APR
Apria
$30.57
+1.2%
0.66$1.08 billion2,057292,654Upcoming Earnings
Acorda Therapeutics logo
ACOR
Acorda Therapeutics
$3.72
-5.8%
0.85$35.30 million9,078952,726Upcoming Earnings
Analyst Report
Viant Technology logo
DSP
Viant Technology
$17.96
+12.4%
0.87$1.06 billion8,346404,019Analyst Upgrade
Gap Up
Home Point Capital logo
HMPT
Home Point Capital
$5.04
+1.6%
1.04$700.83 million86211,852Lockup Expiration
Dynex Capital logo
DX
Dynex Capital
$17.58
-1.2%
1.12$562.30 million7,089533,731Earnings Announcement
Short Interest Increase
Companhia Paranaense de Energia - COPEL logo
ELP
Companhia Paranaense de Energia - COPEL
$5.83
-1.9%
1.20$3.19 billion6,270821,543
Firsthand Technology Value Fund logo
SVVC
Firsthand Technology Value Fund
$5.69
-0.4%
1.24$39.22 million6,23234,561News Coverage
Cango logo
CANG
Cango
$4.10
-3.3%
1.32$614.49 million922703,779Gap Down
Hovnanian Enterprises logo
HOV
Hovnanian Enterprises
$103.89
-1.7%
1.30$643.39 million1,639129,843
SuRo Capital logo
SSSS
SuRo Capital
$12.25
-0.3%
1.34$296.51 million2,926415,668Upcoming Earnings
Short Interest Decrease
News Coverage
AG Mortgage Investment Trust logo
MITT
AG Mortgage Investment Trust
$10.87
-1.9%
1.49$168.55 million6,814476,632Stock Split
Short Interest Decrease
News Coverage
Positive News
Phoenix New Media logo
FENG
Phoenix New Media
$1.40
+1.4%
1.61$101.91 million1101.36 millionGap Up
Qudian logo
QD
Qudian
$1.86
+0.3%
1.69$469.32 million12,8215.45 millionShort Interest Decrease
Gap Down
Guild logo
GHLD
Guild
$15.75
-0.9%
1.81$309.76 million2,70030,613Short Interest Increase
Eagle Point Credit logo
ECC
Eagle Point Credit
$13.29
+1.1%
1.86$430.00 million75,607152,711Short Interest Decrease
Positive News
Watford logo
WTRE
Watford
$34.99
1.89$697.14 million259,856106,996Upcoming Earnings
High Trading Volume
High Trading Volume
OCCI
OFS Credit
$13.86
-0.1%
2.00$82.55 million10167,913
Bioventus logo
BVS
Bioventus
$15.13
-12.3%
2.00$859.76 million14,378186,960News Coverage
Gap Down
Apartment Investment and Management logo
AIV
Apartment Investment and Management
$6.92
+0.3%
2.13$1.04 billion10,1963.85 millionUpcoming Earnings
Short Interest Decrease
SPNT
SiriusPoint
$9.74
+0.3%
2.15$1.57 billion2,948486,823Upcoming Earnings
News Coverage
Portman Ridge Finance logo
PTMN
Portman Ridge Finance
$2.38
-0.8%
2.14$178.96 million710404,114Upcoming Earnings
Agios Pharmaceuticals logo
AGIO
Agios Pharmaceuticals
$48.32
-3.0%
2.12$2.98 billion17,210755,069Earnings Announcement
Analyst Report
Analyst Revision
News Coverage
Gap Down
Maiden logo
MHLD
Maiden
$3.44
-1.1%
2.25$296.33 million181303,492Short Interest Decrease
Navios Maritime Acquisition logo
NNA
Navios Maritime Acquisition
$2.40
-3.2%
2.22$39.74 million232177,500Short Interest Decrease
NN logo
NNBR
NN
$6.79
-0.9%
2.42$292.41 million2,249265,681Upcoming Earnings
News Coverage
Ovid Therapeutics logo
OVID
Ovid Therapeutics
$3.68
-2.1%
2.45$249.53 million2,2262.23 million
Höegh LNG Partners logo
HMLP
Höegh LNG Partners
$5.56
-1.4%
2.70$185.19 million18,412225,329Dividend Cut
Analyst Upgrade
Gap Down
Enova International logo
ENVA
Enova International
$32.82
-1.2%
2.49$1.21 billion4,910362,108Earnings Announcement
News Coverage
Security National Financial logo
SNFCA
Security National Financial
$8.41
-0.1%
2.60$170.72 million15,14259,657
Magnachip Semiconductor logo
MX
Magnachip Semiconductor
$20.54
-0.1%
2.63$951.70 million6,161952,141Gap Up
JOANN logo
JOAN
JOANN
$15.60
-0.1%
2.63$657.70 million2,310488,981
PennyMac Financial Services logo
PFSI
PennyMac Financial Services
$63.05
+1.3%
2.80$4.21 billion7,806826,438Upcoming Earnings
News Coverage
Annaly Capital Management logo
NLY
Annaly Capital Management
$8.54
-0.9%
2.75$11.94 billion459,63615.81 millionEarnings Announcement
Analyst Report
News Coverage
Tronox logo
TROX
Tronox
$18.61
+0.1%
2.83$2.85 billion28,5571.50 millionEarnings Announcement
Dividend Cut
Unusual Options Activity
Great Elm Capital logo
GECC
Great Elm Capital
$3.27
2.82$76.87 million1,299209,402Upcoming Earnings
News Coverage
Positive News
Oaktree Specialty Lending logo
OCSL
Oaktree Specialty Lending
$6.80
2.82$1.23 billion4,254797,090Upcoming Earnings
Short Interest Increase
News Coverage
BlueLinx logo
BXC
BlueLinx
$43.27
+2.7%
2.93$409.68 million4,961190,474Upcoming Earnings
PennyMac Mortgage Investment Trust logo
PMT
PennyMac Mortgage Investment Trust
$19.78
-0.7%
2.87$1.94 billion14,883857,204Upcoming Earnings
News Coverage
Positive News
BPT
BP Prudhoe Bay Royalty Trust
$3.78
-2.8%
2.91$80.89 million51261,315Short Interest Decrease
Positive News
Gap Down
Voyager Therapeutics logo
VYGR
Voyager Therapeutics
$3.13
-1.9%
3.04$118.09 million5,144536,187
Cannae logo
CNNE
Cannae
$33.21
+0.4%
3.14$3.04 billion6,783797,955Upcoming Earnings
Western Asset Mortgage Capital logo
WMC
Western Asset Mortgage Capital
$3.15
-0.6%
3.12$191.56 million3,723909,081Upcoming Earnings
OFS Capital logo
OFS
OFS Capital
$9.42
+0.2%
3.16$126.34 million12,38846,005Short Interest Increase
Negative News
Cheetah Mobile logo
CMCM
Cheetah Mobile
$2.08
+5.1%
3.35$299.43 million10,054887,730News Coverage
PennantPark Investment logo
PNNT
PennantPark Investment
$6.37
-0.5%
3.19$427.11 million1,555427,119Upcoming Earnings
Banco Macro logo
BMA
Banco Macro
$13.65
-2.9%
3.12$872.80 million1,824312,870
A-Mark Precious Metals logo
AMRK
A-Mark Precious Metals
$50.53
-0.8%
3.24$562.70 million226124,027Positive News
Smart Sand logo
SND
Smart Sand
$2.79
-3.1%
3.21$120.90 million1,000351,896Upcoming Earnings
Gap Down
Danaos logo
DAC
Danaos
$66.33
-3.4%
3.35$1.37 billion3,576538,834Upcoming Earnings
Digital Ally logo
DGLY
Digital Ally
$1.59
3.38$81.91 million7,9135.61 millionNews Coverage
Big Lots logo
BIG
Big Lots
$58.20
-0.7%
3.37$2.02 billion8,666952,008
Cowen logo
COWN
Cowen
$39.12
-3.5%
3.32$1.05 billion18,553671,392Earnings Announcement
Dividend Announcement
Insider Selling
Mr. Cooper Group logo
COOP
Mr. Cooper Group
$37.01
+0.0%
3.40$3.19 billion5,007797,020Earnings Announcement
Analyst Report
Short Interest Increase
Navios Maritime Partners logo
NMM
Navios Maritime Partners
$22.49
-0.1%
3.40$445.75 million6,239492,692Earnings Announcement
Dividend Announcement
Short Interest Decrease
Analyst Revision
First Savings Financial Group logo
FSFG
First Savings Financial Group
$73.98
-1.1%
3.45$175.70 million19,95010,052Earnings Announcement
Analyst Revision
Crescent Capital BDC logo
CCAP
Crescent Capital BDC
$18.77
+0.6%
3.50$528.70 million832,448
Grupo Financiero Galicia logo
GGAL
Grupo Financiero Galicia
$7.88
-2.5%
3.40$1.16 billion26,347701,057Short Interest Increase
Prospect Capital logo
PSEC
Prospect Capital
$8.13
-0.9%
3.49$3.15 billion16,7682.61 millionEx-Dividend
News Coverage
Positive News
Dynagas LNG Partners logo
DLNG
Dynagas LNG Partners
$3.09
+3.7%
3.51$110.04 million30099,755Short Interest Increase
News Coverage
Gap Up
B. Riley Financial logo
RILY
B. Riley Financial
$67.71
+1.6%
3.36$1.84 billion6,211334,091News Coverage
Gap Up
Qurate Retail logo
QRTEA
Qurate Retail
$11.98
+0.1%
3.54$4.90 billion52,8173.49 millionUpcoming Earnings
Qurate Retail logo
QRTEB
Qurate Retail
$12.04
-2.5%
3.56$4.92 billion1,3328,681Upcoming Earnings
Positive News
Gap Down
Allscripts Healthcare Solutions logo
MDRX
Allscripts Healthcare Solutions
$17.16
-0.4%
3.55$2.42 billion43,3161.74 millionUpcoming Earnings
JOYY logo
YY
JOYY
$54.02
-0.8%
3.55$4.29 billion18,3371.34 million
Blueknight Energy Partners logo
BKEP
Blueknight Energy Partners
$3.57
-0.3%
3.64$148.04 million92,450287,596Upcoming Earnings
Dividend Announcement
Short Interest Decrease
News Coverage
CF Bankshares logo
CFBK
CF Bankshares
$18.73
3.64$100.86 million1337,425Upcoming Earnings
Short Interest Decrease
Micro Focus International logo
MFGP
Micro Focus International
$5.53
-2.0%
3.59$1.86 billion7,998858,606Short Interest Increase
Community Health Systems logo
CYH
Community Health Systems
$13.37
-0.8%
3.67$1.77 billion30,0002.40 millionEarnings Announcement
Analyst Report
News Coverage
Sage Therapeutics logo
SAGE
Sage Therapeutics
$44.08
-0.1%
3.71$2.58 billion4,275661,825Upcoming Earnings
Analyst Report
Barings BDC logo
BBDC
Barings BDC
$10.63
+0.5%
3.74$509.84 million1,592283,791Upcoming Earnings
Companhia Brasileira de Distribuição logo
CBD
Companhia Brasileira de Distribuição
$6.22
-0.2%
3.72$1.67 billion11,3261.95 millionShort Interest Increase
News Coverage
Stellus Capital Investment logo
SCM
Stellus Capital Investment
$13.14
-0.7%
3.71$256.05 million70071,378Upcoming Earnings
Dividend Announcement
Short Interest Increase
Elevate Credit logo
ELVT
Elevate Credit
$3.60
-1.1%
3.75$128.71 million219405,214Upcoming Earnings
Short Interest Increase
Ellington Residential Mortgage REIT logo
EARN
Ellington Residential Mortgage REIT
$11.14
-0.7%
3.71$137.51 million247149,314Upcoming Earnings
First Eagle Alternative Capital BDC logo
FCRD
First Eagle Alternative Capital BDC
$4.62
+0.4%
3.82$139.10 million1,13358,501Upcoming Earnings
Short Interest Increase
News Coverage
Redwood Trust logo
RWT
Redwood Trust
$11.97
-1.6%
3.79$1.35 billion38,9131.14 millionAnalyst Report
Analyst Revision
News Coverage
Oppenheimer logo
OPY
Oppenheimer
$44.55
-1.3%
3.84$565.16 million1,023115,686Short Interest Increase
Genworth Financial logo
GNW
Genworth Financial
$3.31
-1.5%
3.89$1.68 billion27,1107.23 millionUpcoming Earnings
Aviat Networks logo
AVNW
Aviat Networks
$36.49
-0.4%
3.96$407.37 million5,646379,475Short Interest Decrease
Flagstar Bancorp logo
FBC
Flagstar Bancorp
$45.64
-0.7%
3.95$2.41 billion1,676654,762Earnings Announcement
Dividend Announcement
Daily Journal logo
DJCO
Daily Journal
$342.56
+1.6%
4.01$472.73 million3484,473Upcoming Earnings
Short Interest Decrease
R. R. Donnelley & Sons logo
RRD
R. R. Donnelley & Sons
$5.94
-2.9%
3.91$428.87 million19,1581.51 millionUpcoming Earnings
Seneca Foods logo
SENEA
Seneca Foods
$55.30
-0.1%
4.03$500.47 million10038,141Upcoming Earnings
LRFC
Logan Ridge Finance
$26.75
+3.9%
4.04$72.51 million13,85522,605Upcoming Earnings
Athene logo
ATH
Athene
$65.14
-0.2%
4.12$12.49 billion10,7921.47 millionUpcoming Earnings
Lincoln Educational Services logo
LINC
Lincoln Educational Services
$6.94
-0.3%
4.16$186.66 million169151,040Short Interest Increase
Grupo Supervielle logo
SUPV
Grupo Supervielle
$1.93
-3.0%
4.11$176.29 million3,3531.11 millionAnalyst Downgrade
Short Interest Decrease
Positive News
Gap Down
CGAU
Centerra Gold
$7.88
+0.4%
4.33$2.34 billion50868,187
Northeast Bank logo
NBN
Northeast Bank
$32.03
+1.5%
4.38$267.13 million72344,342Earnings Announcement
Dividend Announcement
News Coverage
China Online Education Group logo
COE
China Online Education Group
$2.79
-7.9%
4.23$60.20 million4,477120,992Gap Up
Ellington Financial logo
EFC
Ellington Financial
$18.22
+0.1%
4.34$797.71 million6,440590,558Upcoming Earnings
Analyst Downgrade
Short Interest Decrease
Navient logo
NAVI
Navient
$20.45
+1.0%
4.35$3.67 billion80,9721.93 millionEarnings Announcement
Analyst Downgrade
Analyst Revision
Banco BBVA Argentina logo
BBAR
Banco BBVA Argentina
$3.07
-1.9%
4.26$627.01 million1,750381,010
RNDB
Randolph Bancorp
$21.65
+2.0%
4.49$114.88 million39,693Earnings Announcement
Short Interest Decrease
Gap Up
Koppers logo
KOP
Koppers
$30.75
-0.9%
4.42$653.16 million188134,307Upcoming Earnings
American Equity Investment Life logo
AEL
American Equity Investment Life
$32.36
+0.3%
4.52$3.09 billion3,200636,776Upcoming Earnings
Atlas Air Worldwide logo
AAWW
Atlas Air Worldwide
$66.46
-1.9%
4.43$1.93 billion3,412453,872Upcoming Earnings
GasLog Partners logo
GLOP
GasLog Partners
$4.21
-4.1%
4.34$208.79 million5,846908,535Earnings Announcement
Dividend Announcement
Analyst Downgrade
Analyst Revision
News Coverage

Smart investors always try to get the best possible deal on whatever security or asset they are buying. The better the deal, the higher the chance of generating a substantial amount of profit from the investment. To do so, value and non-value investors use a wide array of tools to try and analyze the actual value of an asset.

The price to earnings ratio (P/E) is one of the most widely used financial measurements when it comes to stock selection.

What is the Price Earnings Ratio?

Price-earnings ratio is a measure that seeks to ascertain the relationship between the price of a company’s stock and its earnings per share. Being a ratio, it is calculated by dividing a company’s current stock price by its earnings per share over a given time period (usually one year).

The ratio provides a way for investors to determine how much they would pay for every dollar of 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.

Stock price expresses the value that investors are placing on an investment while the price to earnings ratio indicates the amount of money investors are willing to pay for every dollar of earnings. Given that P/E is calculated using earnings per share, the measurement is subject to manipulation by management and the specific accounting techniques they choose.

Looking at P/E 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.

How to Calculate P/E

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

Earnings per share are calculated by starting with the net income of the company, subtracting any dividends on preferred stock that the company must pay, and dividing the result by the number of outstanding shares. This metric gives insight into a company’s financial health. Earnings per share provide the E portion of the P/E ratio.

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.  P/E is usually 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, but because a low P/E is a good sign and an even slightly negative P/E could mean that the company is losing a lot of money, negative P/E values are usually listed as N/A (not available) to avoid confusion.

For example, Company XYZ is trading at $50 a share and has trailing earnings per share of $10.  The price to earnings ratio, in this case, will be 5

What this means is that investors will have to pay $5 for every dollar of the company’s earnings. In other words, the stock is trading at a multiple of 5. Since a trailing EPS was used, the ratio is considered a trailing price-earnings ratio. Whenever a future predicted EPS is used, then the ratio is considered a leading price/earnings ratio.

P/E Analysis

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. A low P/E ratio is usually good as it allows investors to pay less for every dollar on earnings.

However, it is also important to note that a lower P/E ratio may at times be indicative of poor current and predicted performance. While an investor will be able to pay less for every dollar of earnings, should underperformance continue then investors may lose big.

Companies with higher P/E are expected to have higher earnings in the future, and they are usually expected to issue higher dividends.  That is why investors are willing to pay a hefty amount for the earnings on offer, and why the price is so high. Companies with increasing earnings per share will most of the time see the market value of their share increase. It is up to the individual investor to do their analysis and decide if the high price and high P/E ratio are justified based on the company’s outlook, or if the stock is overvalued and not a good buy.

Price to earnings ratio is especially useful when comparing companies within the same industry. For example, the market price of company XYZ is $60 and has earnings per share of $10, its P/E, in this case, will be $6. If the industry P/E average is 8, it means the market value of company XYZ ought to be $80 (8X10) thus the stock as it stands is undervalued by $20. The investor’s job then would be to find out if there is some reason why XYZ will underperform its peers or if the stock has simply gone unnoticed and it’s a good time to snatch it up while the price is low.

Conversely, if the average P/E ratio of the industry is 4, then it means the stock is overvalued by $20 given that it ought to be trading at $40 ($10x4). Depending on the outlook for the company, this might be a good time to sell the stock.

Why the Price-Earnings Ratio Is Important

Given that P/E is the current price of a stock divided by previous earnings per share, it is always subject to daily change as stock price changes. As the price varies, P/E varies along with it in order to show the current price relative to past performance.

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.

How to Use Price to Earnings to Evaluate a Company

The first step to using price to earnings to evaluate whether a stock is fairly valued involves finding companies that operate in the same field. Although finding a perfect match will always be a challenge, narrowing down the search to such things as geography or product and services is a good starting point.

The next step after finding comparable companies is adjusting earnings across the peer group. In this case, one ought to find out whether the comparable companies do use the same accounting methods such as inventory, revenue, and depreciation when it comes to calculating earnings. Adjustments should be made to achieve comparable earnings.

Once you have achieved comparable EPS, the next step is calculating the price to earnings ratio of the companies to be able to come up with the industry average. Once the industry average is ascertained, one can go forth and compare each company’s P/E to the industry average.

If a company’s P/E is slightly higher than the industry average, then it means that the market expects the company to continue outperforming the industry going forward. A company with a higher P/E will only be justified if it outperforms the market in key parameters such as future sales and EPS growth. A stock can be considered overpriced if the peer group comparison does not justify the high P/E.

If a company has a lower P/E than the industry, it may not necessarily mean that the company is unfairly undervalued. Instead, the same could mean that the market believes the company is struggling, hinting at possible underperformance in future.

Different industries come with different P/E benchmarks that one ought to consider when it comes to making a comparison. That said it is important to know when a sector or industry is overpriced before making an investment decision.

It’s been found that whenever the P/E ratio of all companies in a sector is above the historical average, then a major price correction may come into play sooner rather than later.  Higher P/E across an industry can make it impossible for companies to live up to expectations when it comes to the generation of satisfactory returns for investors.

Difference between P/E and 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

Price to earnings ratio is a key financial metric for evaluating whether a stock is fairly valued. The fact that it standardizes stocks of different prices and earnings levels, call for its usage in combination with other metrics to ascertain 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, among other fundamentals.


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