Helping You Build Wealth With Honest Research
Since 1996. Try Now


Invalid Username / Password
Invalid Captcha
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Low PE Ratio Stocks

While making investment decisions, it is important to look at financial ratios. One of the important financial ratios is the Price to Earnings (PE) ratio.

PE ratio as the name suggests is the relationship between the share price of a company and its earnings. PE ratio is derived by dividing share price by earnings per share (EPS).

PE ratio indicates how much an investor is willing to pay for each rupee of profit earned. It shows the intrinsic attractiveness of a company.

When a company's PE ratio is lower than a justified PE ratio, the company is believed to be undervalued.

If a low PE ratio stock is fundamentally strong, then there's a good chance the company may perform well in the future. Companies with strong fundamentals but low PE ratios might grow rapidly in the future, thus generating high returns for investors.

Hence, low PE stocks with strong fundamentals are a good investment opportunity.

However, studying the PE ratio in isolation may not give a clear picture. There are various aspects that an investor has to consider while selecting fundamentally strong stocks.

Check out Equitymaster's powerful stock screener for finding the low PE stocks.

Why Captain Pipes Share Price is Falling

Apr 16, 2024

The company recently started work on its greenfield expansion in Ahmedabad, expected to complete by December 2024.

Is Exide Industries Undervalued?

Apr 9, 2024

Exide Industries: Intrinsic Value vs Market Price - A Deep Dive.

Why Small Cap Stocks are Falling

Mar 13, 2024

The promise of chaos in the small cap space is playing out nicely. The BSE smallcap index has fallen over 5% in less than a week.

Why Whirlpool of India Share Price is Falling

Feb 20, 2024

For Whirlpool of India, there's a strong chance that a turnaround is not far away. Here's why the stock deserves a place on your watchlist.

Top 2 PSU Banks with Reasonable Valuations

Jan 26, 2024

The ability for banks like Union Bank of India and Canara Bank to manage their NIMs would be key, given that the rate easing cycle is still 6-9 months away.

Why HUDCO Share Price is Rising

Dec 14, 2023

FIIs have increased stake in HUDCO for the past three quarters and the current rally could just as well be because of FIIs buying more stake in it.

5 Most Undervalued Midcap Stocks to Watch Out as 2024 Begins

Dec 1, 2023

These mid-cap stocks, trading at a discount to their historical averages, could bounce back in 2024.

Top 5 Undervalued Midcap Stocks to Watch Out for in 2024

Oct 30, 2023

Good quality mid-cap stocks are seldom available at attractive valuations. Take a look at these five and be the judge.

5 Beaten Down Stocks with Strong Fundamentals, Poised to Make a Comeback in 2024

Oct 14, 2023

These five companies have the potential to grow in 2024. Take a look...

The 5 Most Undervalued Specialty Chemical Stocks Right Now

Sep 4, 2023

These undervalued gems can offer significant potential for capital appreciation.

Top 5 Undervalued Smallcap Stocks to Watch Out for in FY25

Apr 11, 2024

Here are five stocks that display promising potential for growth and value appreciation in the upcoming year.

Exide Stock Price: Undervalued or Overvalued?

Apr 9, 2024

Is Exide still undervalued after the price surge?

Top 5 Quality Stocks Trading Near 52-Week Lows. Should You Buy?

Mar 3, 2024

While a stock trading near its 52-week low can be tempting, it's important to consider other factors before investing.

This 'Rooftop Solar' Penny Stock is Flying. Should We Turn Bullish?

Feb 12, 2024

This rooftop solar stock is already up 60% in the last few weeks. Is there more steam left?

Top 3 Breakout Stocks to Watch Out (One of Them Looks Undervalued)

Jan 19, 2024

These three stocks recently hit their all-time high. Data suggests there's still a lot of steam left in the rally.

5 Most Undervalued Smallcap Stocks to Watch Out as 2024 Begins

Dec 5, 2023

These smallcap stocks are trading at a discount to their historical average and have the potential to bounce back in 2024.

Top 5 Stocks with Over 7% Dividend Yield and Cheap Valuations

Nov 21, 2023

These five stocks are a perfect blend of income and value for investors looking to generate income and also capitalise on undervalued opportunities.

Top 5 Undervalued Smallcap Stocks to Watch Out for in 2024

Oct 25, 2023

Smallcaps are impacted more than their large counterparts during market drawdowns. But the silver lining is that during the rebound, they bounce back stronger.

Top 5 Sugar Stocks to Watch as Supply Crunch Drives Prices Higher

Sep 9, 2023

These five sugar stocks could benefit the most if there's a supply crunch. Take a look...

Top 5 Beaten-Down Dividend Stocks That Look Undervalued

Aug 24, 2023

These beaten down dividend paymasters could potentially stage a comeback. Here's why...