08 Jun 2019
In investment circles, the price/earnings (PE) ratio is a well-known indicator used to assess whether a stock is good value or not.
A quick refresher; the ratio is calculated as the stock price (P), divided by company earnings per share (E).
As a general rule, if a company’s stock price is low compared to its underlying earnings, it may start to look undervalued (and vice versa).
In view of that, we asked the Stockhead number-crunchers to run some data on which ASX small caps have the lowest PE.