S&P 500   4,455.48
DOW   34,798.00
QQQ   373.33
S&P 500   4,455.48
DOW   34,798.00
QQQ   373.33
S&P 500   4,455.48
DOW   34,798.00
QQQ   373.33
S&P 500   4,455.48
DOW   34,798.00
QQQ   373.33

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)
Biglari logo
0.53$392.36 million1,4355,822
Viant Technology logo
Viant Technology
0.61$764.64 million246,508393,055Analyst Report
Gap Down
Apria logo
0.76$1.25 billion223,228304,533Gap Up
Summit Midstream Partners logo
Summit Midstream Partners
0.80$245.86 million24,29759,587News Coverage
Home Point Capital logo
Home Point Capital
0.82$555.18 million107,348193,811Analyst Upgrade
News Coverage
Acorda Therapeutics logo
Acorda Therapeutics
1.10$52.73 million323,758795,920Gap Down
Cango logo
1.14$615.99 million232,290631,417Short Interest ↑
Hovnanian Enterprises logo
Hovnanian Enterprises
1.19$627.56 million47,279119,215
Qudian logo
1.31$384.57 million661,8454.51 millionNews Coverage
AG Mortgage Investment Trust logo
AG Mortgage Investment Trust
1.32$176.25 million251,663406,648News Coverage
Positive News
SuRo Capital logo
SuRo Capital
1.37$311.52 million151,343414,902
Crescent Point Energy logo
Crescent Point Energy
1.45$2.46 billion2.84 million4.31 millionPositive News
Gap Down
Phoenix New Media logo
Phoenix New Media
1.45$93.17 million95,7551.10 million
Companhia Paranaense de Energia - COPEL logo
Companhia Paranaense de Energia - COPEL
1.50$3.60 billion1.01 million766,358Dividend Announcement
Analyst Upgrade
News Coverage
Liberty Global logo
Liberty Global
1.61$16.51 billion1.61 million1.33 millionAnalyst Upgrade
Analyst Revision
News Coverage
Liberty Global logo
Liberty Global
1.61$16.51 billion1.98 million2.41 millionNews Coverage
NN logo
1.62$225.50 million76,453247,907
First Savings Financial Group logo
First Savings Financial Group
1.63$194.97 million3,96430,005Stock Split
News Coverage
Guild logo
1.64$872.26 million31,40128,269Analyst Revision
Genworth Financial logo
Genworth Financial
1.69$1.87 billion4.31 million6.33 millionNews Coverage
Maiden logo
1.87$280.00 million63,682261,650
Bioventus logo
1.94$833.41 million39,326193,847
JOANN logo
1.96$489.90 million603,556559,780
BlueLinx logo
1.97$491.84 million76,598199,236Gap Up
R. R. Donnelley & Sons logo
R. R. Donnelley & Sons
2.01$318.86 million501,7021.31 million
Portman Ridge Finance logo
Portman Ridge Finance
2.05$220.58 million15,35239,255Analyst Downgrade
News Coverage
Positive News
Eagle Point Credit logo
Eagle Point Credit
2.05$443.59 million98,004157,915Analyst Report
Analyst Revision
News Coverage
Ovid Therapeutics logo
Ovid Therapeutics
2.05$234.37 million157,6751.81 million
Agios Pharmaceuticals logo
Agios Pharmaceuticals
2.09$2.80 billion271,387705,291
Vermilion Energy logo
Vermilion Energy
2.11$1.39 billion2.43 million2.31 millionAnalyst Report
News Coverage
Gap Down
Danaos logo
2.16$1.62 billion161,648493,736
FS KKR Capital logo
FS KKR Capital
2.18$6.37 billion683,703770,379News Coverage
Oxford Square Capital logo
Oxford Square Capital
2.26$200.98 million150,389256,318News Coverage
Navios Maritime Partners logo
Navios Maritime Partners
2.43$590.24 million276,724482,973Analyst Downgrade
Telefónica logo
2.44$27.06 billion701,5711.61 millionAnalyst Report
Enova International logo
Enova International
2.44$1.23 billion116,847327,102
Magnachip Semiconductor logo
Magnachip Semiconductor
2.51$834.72 million265,068828,651
OFS Credit
2.53$79.87 million48,46974,970
Companhia Siderúrgica Nacional logo
Companhia Siderúrgica Nacional
2.54$7.49 billion3.41 million4.20 millionAnalyst Downgrade
Positive News
Gap Down
OFS Capital logo
OFS Capital
2.55$139.52 million38,81648,244
2.61$1.52 billion581,096505,956Short Interest ↑
Golar LNG logo
Golar LNG
2.64$1.28 billion848,8141.46 millionNews Coverage
Mr. Cooper Group logo
Mr. Cooper Group
2.70$3.48 billion449,011803,082Analyst Downgrade
Resolute Forest Products logo
Resolute Forest Products
2.70$946.13 million475,354791,471News Coverage
Gap Down
Allscripts Healthcare Solutions logo
Allscripts Healthcare Solutions
2.72$1.71 billion815,5591.71 million
BrightSphere Investment Group logo
BrightSphere Investment Group
2.77$2.12 billion290,474449,013
Blueknight Energy Partners logo
Blueknight Energy Partners
2.79$129.52 million40,481243,864
PennantPark Investment logo
PennantPark Investment
2.90$437.17 million333,632387,118
Dynex Capital logo
Dynex Capital
2.92$604.32 million315,217518,314Ex-Dividend
Live Ventures logo
Live Ventures
2.94$61.51 million22,99872,099
Nautilus logo
2.96$300.96 million1.05 million1.31 millionGap Up
B. Riley Financial logo
B. Riley Financial
2.97$1.61 billion128,915315,815Positive News
PennyMac Financial Services logo
PennyMac Financial Services
2.97$3.89 billion606,522760,515Analyst Revision
News Coverage
Daily Journal logo
Daily Journal
3.07$448.02 million3434,118
Security National Financial logo
Security National Financial
3.08$172.32 million5,74453,140
Qurate Retail logo
Qurate Retail
3.10$4.26 billion1.72 million3.45 million
Qurate Retail logo
Qurate Retail
3.12$4.29 billion9867,500Short Interest ↓
Digital Ally logo
Digital Ally
3.13$64.39 million502,6384.59 million
Dynagas LNG Partners logo
Dynagas LNG Partners
3.16$106.84 million31,89186,352
American Equity Investment Life logo
American Equity Investment Life
3.17$2.70 billion352,356580,474News Coverage
Dover Motorsports logo
Dover Motorsports
3.17$87.87 million12,67360,703
Prospect Capital logo
Prospect Capital
3.19$3.11 billion1.92 million2.43 millionNews Coverage
Advanced Emissions Solutions logo
Advanced Emissions Solutions
3.21$117.27 million125,252211,490
BP Prudhoe Bay Royalty Trust
3.22$89.67 million126,172227,908Upcoming Earnings
News Coverage
Positive News
China HGS Real Estate
3.24$37.40 million36,322467,437Gap Up
A-Mark Precious Metals logo
A-Mark Precious Metals
3.28$642.91 million87,456119,409Insider Selling
LexinFintech logo
3.30$1.06 billion854,5372.13 millionGap Up
Höegh LNG Partners logo
Höegh LNG Partners
3.30$167.21 million731,484309,556News Coverage
Gap Down
High Trading Volume
Petróleo Brasileiro S.A. - Petrobras logo
Petróleo Brasileiro S.A. - Petrobras
3.46$67.18 billion17.55 million33.86 millionPositive News
Tronox logo
3.46$3.76 billion1.02 million1.69 million
Rand Capital logo
Rand Capital
3.46$42.99 million1,3186,290News Coverage
Positive News
Navios Maritime Acquisition logo
Navios Maritime Acquisition
3.50$62.59 million118,292420,740Upcoming Earnings
Positive News
Micro Focus International logo
Micro Focus International
3.52$1.82 billion315,114750,108News Coverage
Companhia Brasileira de Distribuição logo
Companhia Brasileira de Distribuição
3.54$1.37 billion911,6901.70 millionGap Down
ACRES Commercial Realty logo
ACRES Commercial Realty
3.55$151.44 million32,33979,413Short Interest ↓
Gap Down
Oppenheimer logo
3.56$566.80 million90,967112,187News Coverage
China Online Education Group logo
China Online Education Group
3.56$50.70 million373,038268,103Upcoming Earnings
News Coverage
Gap Up
Ternium logo
3.57$8.65 billion303,777780,592
Sage Therapeutics logo
Sage Therapeutics
3.58$2.67 billion313,115643,735Analyst Report
Rayonier Advanced Materials logo
Rayonier Advanced Materials
3.60$469.74 million221,949537,779Positive News
Aviat Networks logo
Aviat Networks
3.61$376.93 million85,560336,611Analyst Downgrade
Glory Star New Media Group
3.62$122.27 million1.18 million974,145Analyst Downgrade
Gap Up
Comstock Holding Companies logo
Comstock Holding Companies
3.63$41.35 million17,649424,924
Great Elm Capital logo
Great Elm Capital
3.66$79.93 million54,650186,400Analyst Upgrade
Positive News
Seneca Foods logo
Seneca Foods
3.66$424.01 million28,30736,795News Coverage
Gap Down
Jiayin Group logo
Jiayin Group
3.66$219.34 million179,4791.80 millionGap Down
Lincoln Educational Services logo
Lincoln Educational Services
3.68$169.92 million26,734131,635
Boise Cascade logo
Boise Cascade
3.70$2.13 billion267,422386,919
Cowen logo
3.75$1.01 billion191,174605,829Analyst Report
Athene logo
3.75$13.38 billion511,8081.34 millionInsider Selling
News Coverage
Community Health Systems logo
Community Health Systems
3.79$1.54 billion1.85 million2.14 millionAnalyst Report
Options Volume
News Coverage
Gap Down
Woori Financial Group logo
Woori Financial Group
3.80$6.81 billion13,20717,552
GasLog Partners logo
GasLog Partners
3.85$209.78 million228,518771,244News Coverage
Gap Down
Annaly Capital Management logo
Annaly Capital Management
3.85$12.78 billion13.51 million15.30 millionOptions Volume
News Coverage
Cheetah Mobile logo
Cheetah Mobile
3.88$234.65 million104,548739,670
eBay logo
3.89$47.45 billion3.49 million7.42 millionInsider Selling
SigmaTron International logo
SigmaTron International
3.92$43.49 million517,309183,994News Coverage
Gap Up
High Trading Volume
Gerdau logo
3.92$8.50 billion12.65 million12.87 millionDividend Increase
Analyst Downgrade
News Coverage
Banco BBVA Argentina logo
Banco BBVA Argentina
3.95$741.38 million270,905411,177
Oaktree Specialty Lending logo
Oaktree Specialty Lending
3.95$1.30 billion299,358801,315Insider Selling
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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