Last Updated: Monday, February 26, 2018

Top 10 Quality Stocks Trading at P/E below 10: Latest List #3

What is PE Ratio/ PE multiple and how is it calculated?

P/E Ratio or P/E multiple stands for Price to Earning Ratio, this is one of the most popular and proven tool of stock valuation. Price in stock market is more or less determined by P/E ratio. 

P/E = Price/EPS
Price = PE x EPS

*P/E = Price to earning
*EPS = Earning Per Share

As a rule of thumb the lower P/E is, the lower valuation of stock is said to be. However, P/E ratio should not be the single parameter of stock valuation. It should be noted whatever PE multiple we see is the result of past performance of the stock but market always react on future growth potential of the company where you should look for 'Forward P/E'. At the same time investors should not ignore PE,because it reflects valuation trend of the stock. Some stocks tends to trade at higher PE where some of them trade at lower PE, confused? Let me explain in simple way; suppose a stock trading at normal valuation and there is news flash that the cost of raw material used by the company has declined significantly, how will you react? You should simply buy the stock because the overall cost of the company will come down due to which profit will certainly surge. Now come to P/E, due to increased profit the P/E of the stock must also come down. 

Here is the latest list of Top 10 Quality Stocks Trading below 10 P/E: 2018

Top 10 Quality Stocks Trading at Low P/E: Latest List #3 

1. Chennai Petroleum @ 352, P/E: 5.64
2. Dewan Housing finance Ltd (DHFL) : @582 P/E : 5.90
3. Indian Oil Corporation (IOC) @ 363.20 P/E: 8.88
4. GSFC @ 125.95  P/E : 9.91
5. PTC India @ 98.30 P/E: 8.72
6. PTC India Financial Services (PFS) @30.40 P/E : 7.89
7. NHPC @ 26.60  P/E 9.96
8. SJVN @ 34.50 P/E 9.86
9. Cosmo Films @ 291.25, P/E 6.58
10. Deep Industries @ 193.55 P/E 7.68

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Top 10 Quality Stocks Trading at Low P/E: Latest List 2018

1 comment:

  1. Great article, Thanks for your great information, the content is quiet interesting. I will be waiting for your next post.