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META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)

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.

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
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CompanyCurrent PricePE RatioMarket CapVolumeAverage VolumeIndicator(s)
SVB Financial Group stock logo
SVB Financial Group
0.02$28.45 million909,3357.15 millionNews Coverage
Gap Up
SVB Financial Group stock logo
SVB Financial Group
0.02$28.42 million909,3351.90 millionGap Up
Palisade Bio, Inc. stock logo
Palisade Bio
0.11$10.52 million230,4461.42 millionAnalyst Report
News Coverage
Express, Inc. stock logo
0.19$60.48 million595,5531.70 millionUpcoming Earnings
Analyst Report
Short Interest ↑
Team, Inc. stock logo
0.23$17.80 million3,91425,028
ZIM Integrated Shipping Services Ltd. stock logo
ZIM Integrated Shipping Services
0.47$2.15 billion1.61 million4.53 millionUpcoming Earnings
Castor Maritime Inc. stock logo
Castor Maritime
0.54$63.68 million249,6771.06 millionUpcoming Earnings
Gap Up
Chimerix, Inc. stock logo
0.56$99.21 million863,656765,920Analyst Report
Amplify Energy Corp. stock logo
Amplify Energy
0.63$278.25 million355,342566,000
Battalion Oil Co. stock logo
Battalion Oil
0.68$89.32 million13,01712,879Negative News
Transcontinental Realty Investors, Inc. stock logo
Transcontinental Realty Investors
0.69$312.14 million1,5845,850Analyst Report
Sunlands Technology Group stock logo
Sunlands Technology Group
0.70$65.23 million3,80018,745Upcoming Earnings
Gap Down
American Realty Investors, Inc. stock logo
American Realty Investors
0.75$270.19 million3,1868,684
ALJ Regional Holdings, Inc. stock logo
ALJ Regional
0.76$48.57 million1,87422,569
Navios Maritime Holdings Inc. stock logo
Navios Maritime
0.77$27.19 million41,50083,606Analyst Report
News Coverage
Globus Maritime Limited stock logo
Globus Maritime
0.79$19.24 million38,33471,530
Imperial Petroleum Inc. stock logo
Imperial Petroleum
0.77$45.82 million709,390737,030Gap Down
Vital Energy, Inc. stock logo
Vital Energy
0.88$814.74 million529,364677,348Analyst Report
Analyst Revision
Southwestern Energy stock logo
Southwestern Energy
0.93$5.97 billion32.84 million24.40 millionAnalyst Report
Positive News
Theravance Biopharma, Inc. stock logo
Theravance Biopharma
0.94$629.44 million456,183506,190Analyst Report
SilverBow Resources, Inc. stock logo
SilverBow Resources
1.08$561.20 million205,178291,270Insider Selling
Positive News
Leafly Holdings, Inc. stock logo
1.14$15.85 million105,621189,102Short Interest ↓
Gap Up
Sotherly Hotels Inc. stock logo
Sotherly Hotels
1.18$34.57 million25,13736,805Analyst Report
Insignia Systems, Inc. stock logo
Insignia Systems
1.19$13.86 million10,9406,737
Navios Maritime Partners L.P. stock logo
Navios Maritime Partners
1.21$687.20 million54,334117,245Upcoming Earnings
News Coverage
Jackson Financial Inc. stock logo
Jackson Financial
1.33$2.49 billion937,8801.16 million
Credit Suisse Group AG stock logo
Credit Suisse Group
1.33$2.70 billion9.84 million38.15 millionAnalyst Report
Euroseas Ltd. stock logo
1.35$141.58 million20,11428,164Dividend Announcement
Analyst Downgrade
Ambac Financial Group, Inc. stock logo
Ambac Financial Group
1.28$662.15 million517,604447,496Analyst Downgrade
Ambac Financial Group, Inc. stock logo
Ambac Financial Group
1.37$662.13 million517,604447,496Analyst Downgrade
IRSA Inversiones y Representaciones Sociedad Anónima stock logo
IRSA Inversiones y Representaciones Sociedad Anónima
1.37$453.29 million24,58986,871Analyst Report
Short Interest ↓
News Coverage
Callon Petroleum stock logo
Callon Petroleum
1.44$2.01 billion844,5471.49 millionAnalyst Report
Short Interest ↓
PBF Energy Inc. stock logo
PBF Energy
1.47$4.77 billion2.02 million2.94 millionAnalyst Upgrade
Analyst Revision
YS Biopharma Co., Ltd. stock logo
YS Biopharma
1.45$29.87 million262,0641.10 millionUpcoming Earnings
Liberty Global plc stock logo
Liberty Global
1.47$7.90 billion1.11 million1.50 million
Steel Connect, Inc. stock logo
Steel Connect
1.50$50.18 million48,25481,873
X Financial stock logo
X Financial
1.53$182.10 million2,58332,228Upcoming Earnings
News Coverage
Positive News
Liberty Global plc stock logo
Liberty Global
1.55$8.28 billion1.68 million1.83 millionPositive News
Biglari Holdings Inc. stock logo
1.61$439.79 million1,4302,389Analyst Report
Light & Wonder, Inc. stock logo
Light & Wonder
1.63$5.73 billion555,721399,744News Coverage
Chesapeake Energy Co. stock logo
Chesapeake Energy
1.71$11.01 billion2.34 million1.56 million
Jiayin Group Inc. stock logo
Jiayin Group
1.61$278.37 million99,148120,661
Chesapeake Energy Co. stock logo
Chesapeake Energy
1.71$11.01 billion2.34 million1.56 millionOptions Volume
Ashford Inc. stock logo
-0.89$31.20 million9,1035,132
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria stock logo
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
1.68$365.48 million54,368131,774Analyst Report
Stock Split
Grindrod Shipping Holdings Ltd. stock logo
Grindrod Shipping
1.78$183.07 million48,23989,772News Coverage
Par Pacific Holdings, Inc. stock logo
Par Pacific
1.76$1.32 billion1.30 million880,753Analyst Report
Berry Co. stock logo
1.85$523.37 million486,944719,735Analyst Report
Crescent Energy stock logo
Crescent Energy
1.90$1.76 billion297,233382,484
Vermilion Energy Inc. stock logo
Vermilion Energy
1.86$1.92 billion640,9041.60 millionAnalyst Report
First Citizens BancShares, Inc. stock logo
First Citizens BancShares
1.88$19.17 billion220,602183,901Analyst Report
Analyst Revision
YPF Sociedad Anónima stock logo
YPF Sociedad Anónima
1.96$4.28 billion1.21 million2.49 millionAnalyst Report
News Coverage
Costamare Inc. stock logo
1.92$1.06 billion429,814607,042Analyst Report
Ovintiv Inc. stock logo
1.98$8.28 billion2.84 million3.38 millionAnalyst Revision
Alpha Metallurgical Resources, Inc. stock logo
Alpha Metallurgical Resources
1.94$2.09 billion396,610265,737
Talos Energy Inc. stock logo
Talos Energy
1.94$1.51 billion1.47 million1.68 million
Arch Resources, Inc. stock logo
Arch Resources
1.98$2.27 billion377,061449,827Analyst Report
Hersha Hospitality Trust stock logo
Hersha Hospitality Trust
1.96$243.64 million294,940595,435Analyst Report
Daqo New Energy Corp. stock logo
Daqo New Energy
1.93$2.96 billion1.72 million1.22 millionAnalyst Report
Positive News
AdTheorent Holding Company, Inc. stock logo
2.00$122.67 million119,909110,416
Gran Tierra Energy
1.97$218.45 million358,584308,158Analyst Report
Peabody Energy Co. stock logo
Peabody Energy
1.98$3.01 billion5.76 million4.04 million
Pyxis Tankers Inc. stock logo
Pyxis Tankers
2.01$43.61 million97,280107,102Earnings Report
Positive News
Gap Down
Liberty TripAdvisor Holdings, Inc. stock logo
Liberty TripAdvisor
2.09$52.45 million131,899326,204Analyst Report
Short Interest ↓
News Coverage
Northern Oil and Gas, Inc. stock logo
Northern Oil and Gas
2.05$2.64 billion1.94 million1.69 millionAnalyst Report
Analyst Revision
DISH Network Co. stock logo
DISH Network
2.12$3.71 billion10.22 million7.63 millionAnalyst Report
Insider Buying
Short Interest ↑
Comstock Resources, Inc. stock logo
Comstock Resources
2.11$2.69 billion4.03 million4.77 millionAnalyst Report
Analyst Revision
Bassett Furniture Industries, Incorporated stock logo
Bassett Furniture Industries
2.16$124.75 million5,48226,094Short Interest ↑
Intercept Pharmaceuticals, Inc. stock logo
Intercept Pharmaceuticals
2.16$565.28 million3.37 million863,236Analyst Downgrade
News Coverage
High Trading Volume
EuroDry Ltd. stock logo
2.11$44.98 million11,53312,915
Petróleo Brasileiro S.A. - Petrobras stock logo
Petróleo Brasileiro S.A. - Petrobras
2.17$76.37 billion18.47 million22.87 millionAnalyst Report
CNX Resources Co. stock logo
CNX Resources
2.24$2.65 billion4.56 million3.15 millionAnalyst Report
Short Interest ↓
Analyst Revision
Dynagas LNG Partners LP stock logo
Dynagas LNG Partners
2.19$92.84 million14,17643,129Analyst Report
News Coverage
Lightning eMotors, Inc. stock logo
Lightning eMotors
2.31$20.91 million108,915111,559Analyst Report
News Coverage
Gap Up
W&T Offshore, Inc. stock logo
W&T Offshore
2.31$603.42 million1.82 million2.79 millionAnalyst Report
HomeStreet, Inc. stock logo
2.34$120.13 million515,389263,507Analyst Report
The Container Store Group, Inc. stock logo
The Container Store Group
2.37$127.08 million696,327391,098Analyst Report
News Coverage
Global Ship Lease, Inc. stock logo
Global Ship Lease
2.40$687.05 million235,781595,481Analyst Report
Analyst Revision
Vintage Wine Estates, Inc. stock logo
Vintage Wine Estates
2.40$67.65 million211,291254,375
Ecopetrol S.A. stock logo
2.41$19.16 billion1.41 million2.33 millionAnalyst Report
Gray Television, Inc. stock logo
Gray Television
2.42$770.49 million1.60 million1.01 millionAnalyst Report
Earthstone Energy, Inc. stock logo
Earthstone Energy
2.48$1.79 billion931,6111.35 millionAnalyst Report
Short Interest ↓
Positive News
Capital Product Partners L.P. stock logo
Capital Product Partners
2.44$271.97 million37,93650,485Analyst Report
Banco BBVA Argentina S.A. stock logo
Banco BBVA Argentina
2.46$878.23 million488,217703,167Analyst Report
News Coverage
AMREP Co. stock logo
2.46$71.93 million2,9526,832Analyst Report
Consolidated Communications Holdings, Inc. stock logo
Consolidated Communications
2.49$442.10 million297,402637,359Analyst Report
Positive News
Bridgford Foods Co. stock logo
Bridgford Foods
2.50$114.05 million3,8405,710
Citi Trends, Inc. stock logo
Citi Trends
2.53$149.75 million136,586134,729Upcoming Earnings
Analyst Report
Gray Television, Inc. stock logo
Gray Television
2.54$808.59 million5791,956Gap Up
JAKKS Pacific, Inc. stock logo
JAKKS Pacific
2.59$224.76 million111,486118,649Analyst Report
News Coverage
FlexShopper, Inc. stock logo
2.65$23.06 million47,00427,396Analyst Revision
Enel Chile S.A. stock logo
Enel Chile
2.61$3.83 billion1.32 million587,345Dividend Increase
Short Interest ↑
High Trading Volume
Ferroglobe PLC stock logo
2.61$832.21 million704,9961.27 millionAnalyst Report
Analyst Revision
Avantax, Inc. stock logo
2.62$814.25 million367,911572,802
SM Energy stock logo
SM Energy
2.64$3.24 billion916,6541.87 millionAnalyst Report
Positive News
Warrior Met Coal, Inc. stock logo
Warrior Met Coal
2.70$1.84 billion659,734614,037Positive News
Ardmore Shipping Co. stock logo
Ardmore Shipping
2.68$505.44 million476,549909,053Analyst Report
Short Interest ↓
SandRidge Energy, Inc. stock logo
SandRidge Energy
2.78$638.37 million771,484550,384Dividend Announcement
Analyst Report
News Coverage
Diana Shipping Inc. stock logo
Diana Shipping
2.71$380.85 million278,550634,468Upcoming Earnings
Short Interest ↓
Woori Financial Group Inc. stock logo
Woori Financial Group
2.76$6.54 billion32,82548,829News Coverage
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.

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.

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.

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.

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,

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.

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.

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.

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.

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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