Top 4 Least Expensive Stocks With The Lowest Price Earnings Ratio

Investors get into the stock markets for good quick gains as well as to accumulate a sizable corpus over the years for future financial goals. Nonetheless, for a layman to make a right bet in a stock available at an attractive valuation may be a tough call as it is just not the stock price that indicates whether the stock is cheaply priced or expensive.

Hence here is where the role of 5 fundamental valuation ratios comes into play including:

• Price to earnings ratio
• Return on Equity
• Price to book ratio
• Debt to equity ratio
• Price/earnings-to-growth ratio

Nevertheless, price to earnings multiple or P/E ratio is the most favourite to take the call. By price to earnings ratio we mean the scrip's market price divided by its earnings per share or EPS.

Now for determining the EPS one needs to divide the company's earnings or net profit by the existing outstanding shares in a scrip.

But herein we need to remember while deciding on the valuation, while P/E ratio is the most significant, it needs to be looked at in conjunction with other parameters. Also, if the two companies being considered are from different industries, they need not be compared on the basis of P/E multiple.

So, here we put across 4least expensive stock considering P/E multiple:

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