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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.

Country:
Market Cap:
CompanyPE RatioMarket CapCurrent PricePrice ChangeVolumeAverage VolumeIndicator(s)
FBL Financial Group logo
FFG
FBL Financial Group
0.00$247,000.00$0.01flat96,52222,106Decrease in Short Interest
Heavy News Reporting
OIBRQ
Oi SA em Recuperacao Judicial
0.02$47.91 million$0.30-1.6%4,38831,015Upcoming Earnings
BSRC
BioSolar
0.05$1.55 million$0.01+29.1%3.74 million767,161High Trading Volume
Heavy News Reporting
Ultra Petroleum logo
UPL
Ultra Petroleum
0.18$26.65 million$0.14flat03.90 million
SBSAA
Spanish Broadcasting System
0.21$1.35 million$0.21-1.9%107,033
SIAF
Sino Agro Food
0.27$7.41 million$0.14-3.2%56,77764,255
Mammoth Energy Services logo
TUSK
Mammoth Energy Services
0.29$77.89 million$1.66-4.0%218,207351,290
LSC Communications logo
LKSD
LSC Communications
0.38$12.44 million$0.47-2.1%578,700624,136Heavy News Reporting
FTS International logo
FTSI
FTS International
0.44$120.08 million$1.03-6.4%819,000610,461Analyst Upgrade
Increase in Short Interest
Heavy News Reporting
Mallinckrodt logo
MNK
Mallinckrodt
0.45$282.55 million$3.57-3.3%4.76 million5.14 millionHeavy News Reporting
HCR
Hi-Crush
0.46$68.88 million$0.69-0.7%1.09 million1.01 million
WHZT
Whiting USA Trust II
0.56$7.93 million$0.43+0.2%61,92441,315Heavy News Reporting
PTEEF
Plaintree Systems
0.59$760,000.00$0.08flat150768Upcoming Earnings
CBL & Associates Properties logo
CBL
CBL & Associates Properties
0.61$176.97 million$1.05+5.8%1.81 million2.91 millionAnalyst Downgrade
Analyst Revision
Mid-Con Energy Partners logo
MCEP
Mid-Con Energy Partners
0.61$8.07 million$0.27+0.3%169,646141,939Increase in Short Interest
Heavy News Reporting
Renren logo
RENN
Renren
0.61$55.73 million$0.79flat28,800188,370Analyst Downgrade
Heavy News Reporting
UONEK
Urban One
0.65$89.74 million$1.95flat6,22637,868Decrease in Short Interest
Heavy News Reporting
ASGLY
ASAHI GLASS/ADR
0.68$8.06 billion$7.39+0.8%3,79046,971Upcoming Earnings
UONE
Urban One
0.69$90.20 million$1.96-3.4%7122,243Increase in Short Interest
Heavy News Reporting
Danaos logo
DAC
Danaos
0.69$129.74 million$8.56-0.9%116,00050,980High Trading Volume
Increase in Short Interest
Unit logo
UNT
Unit
0.83$46.33 million$0.83flat477,859661,909Increase in Short Interest
Heavy News Reporting
Chesapeake Energy logo
CHK
Chesapeake Energy
0.88$1.54 billion$0.79flat63.12 million55.82 millionAnalyst Revision
IHRTQ
iHeartMedia
0.88$90.99 million$1.00flat019,935
Acorda Therapeutics logo
ACOR
Acorda Therapeutics
0.97$84.53 million$1.76-4.3%1.16 million1.25 millionIncrease in Short Interest
Heavy News Reporting
Yirendai logo
YRD
Yirendai
1.04$294.87 million$4.65-1.7%387,200194,189
Sandridge Mississippian Trust I logo
SDT
Sandridge Mississippian Trust I
1.10$5.96 million$0.21flat50,280209,554
PVL
Permianville Royalty Trust
1.10$54.45 million$1.68+1.8%66,40081,059Increase in Short Interest
Heavy News Reporting
CENT PUERTO S A/S logo
CEPU
CENT PUERTO S A/S
1.11$613.18 million$4.52+8.1%544,700357,120
Sequential Brands Group logo
SQBG
Sequential Brands Group
1.12$24.19 million$0.37-0.2%40,517355,186
Party City Holdco logo
PRTY
Party City Holdco
1.21$179.48 million$1.92-2.0%3.64 million2.42 millionDecrease in Short Interest
SandRidge Mississippian Trust II logo
SDR
SandRidge Mississippian Trust II
1.28$7.21 million$0.23+55.9%0451,161
China XD Plastics logo
CXDC
China XD Plastics
1.40$123.84 million$1.85flat447,95325,759Insider Buying
High Trading Volume
Increase in Short Interest
Heavy News Reporting
J.Jill logo
JILL
J.Jill
1.43$45.80 million$1.03flat368,100643,499Analyst Upgrade
Increase in Short Interest
Abraxas Petroleum logo
AXAS
Abraxas Petroleum
1.49$45.06 million$0.27flat2.64 million1.21 millionHigh Trading Volume
Increase in Short Interest
Gulfport Energy logo
GPOR
Gulfport Energy
1.49$435.17 million$2.73-4.2%4.80 million4.29 millionAnalyst Upgrade
INDIVIOR PLC/S logo
INVVY
INDIVIOR PLC/S
1.49$411.78 million$2.69-4.9%7,14113,419Upcoming Earnings
Empresa Distribuidora y Cmrz Nrt logo
EDN
Empresa Distribuidora y Cmrz Nrt
1.55$225.69 million$5.30+6.0%108,575101,081
CRBO
Carbon Natural Gas
1.56$29.11 million$3.80flat2539
ENZN
Enzon Pharmaceuticals
1.57$10.11 million$0.22-3.8%26,04941,791
SilverBow Resources logo
SBOW
SilverBow Resources
1.57$111.59 million$9.96-2.8%27,50631,741Decrease in Short Interest
Heavy News Reporting
Pacific Coast Oil Trust logo
ROYT
Pacific Coast Oil Trust
1.58$9.96 million$0.52+45.7%16.31 million374,024Upcoming Earnings
High Trading Volume
NVFY
Nova Lifestyle
1.60$11.42 million$0.41flat24,16337,882
Endo International logo
ENDP
Endo International
1.60$1.07 billion$4.63-1.5%5.32 million5.83 million
ROAN
Roan Resources
1.65$234.59 million$1.52flat0771,168Heavy News Reporting
Venator Materials logo
VNTR
Venator Materials
1.65$378.78 million$3.64-5.0%225,900679,625Analyst Report
Decrease in Short Interest
Analyst Revision
Heavy News Reporting
Tupperware Brands logo
TUP
Tupperware Brands
1.76$369.68 million$7.56flat909,007976,057Decrease in Short Interest
Tailored Brands logo
TLRD
Tailored Brands
1.79$245.62 million$4.13-4.2%5.17 million2.60 millionEarnings Announcement
Analyst Report
Decrease in Short Interest
Analyst Revision
Heavy News Reporting
KITOV PHARMA LT/S logo
KTOV
KITOV PHARMA LT/S
1.79$13.67 million$0.70-1.4%24,100765,676
SUMMIT THERAPEU/S logo
SMMT
SUMMIT THERAPEU/S
1.82$49.67 million$1.53-3.2%63,48344,279Upcoming Earnings
BBCP
Concrete Pumping
1.83$263.64 million$4.53flat59,898136,461Analyst Downgrade
Erytech Pharma logo
ERYP
Erytech Pharma
1.85$80.91 million$4.51flat98126
XIN
Xinyuan Real Estate
1.88$242.86 million$3.91+1.6%142,700123,163Earnings Announcement
Dividend Announcement
Increase in Short Interest
PPDF
PPDAI Group
1.94$710.67 million$2.21-4.7%1.96 million2.17 millionIncrease in Short Interest
Southwestern Energy logo
SWN
Southwestern Energy
1.95$1.08 billion$1.99flat26.62 million18.87 millionIncrease in Short Interest
BPT
BP Prudhoe Bay Royalty Trust
2.03$144.45 million$6.56-2.8%215,700302,999
GENEL ENERGY PL/ADR logo
GEGYY
GENEL ENERGY PL/ADR
2.05$624.66 million$2.24flat3,127N/AHigh Trading Volume
INTL CONS AIRL/S logo
ICAGY
INTL CONS AIRL/S
2.09$5.71 billion$14.54+1.4%123,501187,068Analyst Upgrade
Heavy News Reporting
Ashford Hospitality Trust logo
AHT
Ashford Hospitality Trust
2.10$270.59 million$2.65flat414,592794,925Dividend Increase
Decrease in Short Interest
Tenneco logo
TEN
Tenneco
2.15$832.56 million$13.48-6.5%1.21 million1.21 million
Charah Solutions logo
CHRA
Charah Solutions
2.22$61.32 million$2.04-2.4%19,00053,687Decrease in Short Interest
SandRidge Permian Trust logo
PER
SandRidge Permian Trust
2.27$46.22 million$0.89+0.2%180,800188,129Increase in Short Interest
KLXE
KLX Energy Services
2.31$154.29 million$6.48-0.9%301,641213,883Analyst Revision
Heavy News Reporting
XYF
X Financial
2.31$290.10 million$1.82+2.8%85,90052,669Heavy News Reporting
Warrior Met Coal logo
HCC
Warrior Met Coal
2.33$1.03 billion$20.19flat1.23 million924,823Increase in Short Interest
Analyst Revision
Heavy News Reporting
Rayonier Advanced Materials logo
RYAM
Rayonier Advanced Materials
2.35$239.57 million$3.97+0.5%752,900866,163Analyst Upgrade
ZIMCF
ZIM
2.37$577,000.00$0.07-35.5%9,95021,703
Washington Prime Group logo
WPG
Washington Prime Group
2.38$696.02 million$3.59-1.6%3.60 million3.04 million
BDCO
Blue Dolphin Energy
2.41$11.59 million$0.94flat1,32887High Trading Volume
Quad/Graphics logo
QUAD
Quad/Graphics
2.48$243.36 million$4.44-4.1%296,400549,854Analyst Upgrade
GTX
Garrett Motion
2.51$728.06 million$10.17-2.3%552,700775,986
Eca Marcellus Trust I logo
ECT
Eca Marcellus Trust I
2.52$12.94 million$0.74flat42,67852,765Increase in Short Interest
Consol Energy logo
CEIX
Consol Energy
2.53$346.04 million$13.60-4.2%333,078306,829Heavy News Reporting
ATLC
Atlanticus
2.54$133.31 million$8.40+0.6%2,70321,706
GameStop logo
GME
GameStop
2.55$500.23 million$5.45-2.3%5.44 million5.49 millionEarnings Announcement
Analyst Report
Analyst Revision
United States Steel logo
X
United States Steel
2.56$2.36 billion$13.71-3.7%14.18 million12.59 million
Denbury Resources logo
DNR
Denbury Resources
2.63$608.91 million$1.26flat11.95 million12.57 million
Renewable Energy Group logo
REGI
Renewable Energy Group
2.63$693.56 million$17.80-2.8%1.45 million686,356Analyst Downgrade
High Trading Volume
EVRAZ logo
EVRZF
EVRAZ
2.67$6.35 billion$4.40flat0859Analyst Downgrade
Turquoise Hill Resources logo
TRQ
Turquoise Hill Resources
2.67$1.24 billion$0.75+8.3%10.61 million5.74 million
Carrizo Oil & Gas logo
CRZO
Carrizo Oil & Gas
2.68$720.51 million$7.46-4.1%2.74 million4.89 millionAnalyst Upgrade
Decrease in Short Interest
Heavy News Reporting
Whiting Petroleum logo
WLL
Whiting Petroleum
2.71$515.84 million$5.91-6.9%15.07 million6.83 millionHigh Trading Volume
Increase in Short Interest
Michaels Companies logo
MIK
Michaels Companies
2.73$1.01 billion$6.42-7.9%3.78 million3.08 millionIncrease in Short Interest
Cheetah Mobile logo
CMCM
Cheetah Mobile
2.75$474.42 million$3.25-1.8%299,300458,561Decrease in Short Interest
Finjan logo
FNJN
Finjan
2.78$53.86 million$1.95-1.1%14,24082,363Decrease in Short Interest
Ternium logo
TX
Ternium
2.78$4.10 billion$21.36-1.8%198,031362,022Increase in Short Interest
NOVC
Novation Companies
2.79$6.27 million$0.06+15.6%43,62173,241
SVVC
Firsthand Technology Value Fund
2.81$40.20 million$5.59-1.1%37,03018,277High Trading Volume
Heavy News Reporting
PG&E logo
PCG
PG&E
2.81$5.95 billion$11.24flat24.11 million16.00 millionAnalyst Report
Federal Home Loan Mortgage logo
FMCC
Federal Home Loan Mortgage
2.81$1.94 billion$3.15+5.7%4.05 million3.00 million
TransGlobe Energy logo
TGA
TransGlobe Energy
2.82$86.32 million$1.27+3.3%183,118123,334Decrease in Short Interest
Arlington Asset Investment logo
AI
Arlington Asset Investment
2.83$214.68 million$5.84flat204,500432,922Decrease in Short Interest
Heavy News Reporting
Penn Virginia logo
PVAC
Penn Virginia
2.86$414.89 million$26.29-4.2%294,846222,257Analyst Upgrade
Laredo Petroleum logo
LPI
Laredo Petroleum
2.87$616.55 million$2.67-4.3%5.18 million5.42 millionAnalyst Report
Increase in Short Interest
Analyst Revision
Turtle Beach logo
HEAR
Turtle Beach
2.88$127.60 million$8.79flat395,078740,125
Kirkland's logo
KIRK
Kirkland's
2.89$15.29 million$1.10flat1.02 million478,561High Trading Volume
Heavy News Reporting
Uniti Group logo
UNIT
Uniti Group
2.91$1.41 billion$7.31+0.9%1.39 million3.38 million
Avaya logo
AVYA
Avaya
2.94$1.23 billion$11.51+2.5%3.12 million1.97 million
Chemours logo
CC
Chemours
2.99$2.71 billion$16.97-4.4%2.59 million2.58 millionIncrease in Short Interest
CCOM
CCOM Group
3.00$9.61 million$1.20+14.3%5,8252,130High Trading Volume
Delphi Technologies logo
DLPH
Delphi Technologies
3.06$1.14 billion$13.42-3.4%908,3001.38 millionIncrease in Short Interest
Last Updated: Saturday, 03:31 AM ET. Prices are 15-minutes delayed.

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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