The price-to-earnings (P/E) metric is one of the most used by analysts and investors when it comes to calculating whether a stock is discounted.
Price over earnings measures the time it will take for investors to recoup their investment. The smaller the indicator, the cheaper the shares.
The request of Money Times, Felipe Moura, partner and analyst at Finacap Investimentos, calculated the stocks with the lowest P/E on the Ibovespa. See the list below:
| Company | ticker | Price on Profit (P/L) |
|---|---|---|
| Marfrig | MRFG3 | 1.21x |
| Petrobras | PETR4 | 1.79x |
| Bradespar | BRAP4 | 1.79x |
| Usiminas | USIM5 | 1.92x |
| Petrobras | PETR3 | 2.08x |
| JBS | JBSS3 | 2.76x |
| Sugar Loaf | PCAR3 | 2.95x |
| Metalúrgica Gerdau | GOAU4 | 3.11x |
| OK | VOUCH3 | 3.64x |
| Gerdau | GGBR4 | 3.67x |
According to Felipe, in the case of stocks, the price is not the most important thing, but the P/E that takes into account the price in relation to fundamentals such as profit and dividends.
“There is a caveat here: this analysis does not necessarily mean that the stock will perform well in a subsequent period, however it should be a good initial filter to find good opportunities in the universe of listed companies”, he says.
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Source: Moneytimes
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
