Stockhead – Here’s a small-cap investing expert on how to use the P/E ratio when evaluating companies

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.

Full article here.