Well, there are 4 stocks with price-earnings ratios of less than 10, an extraordinary achievement of some kind given the fervor for stocks in general recently.
With the Walt Disney Company DIS now trading at a price-earnings ratio of 143 and with Salesforce’s CRM p/e up there at 127, what’s the p/e for the Dow Jones Industrials taken together? The most recent ratio for those 30 stocks combined is a mere 22 — almost a reasonable metric compared to the big tech indexes. What Dow components are holding it down? Or, to put it another way, which of the 30 stocks in that index are looking more like value stocks than the others? Well, there are 4 stocks with price-earnings ratios of 10 or less than 10, an extraordinary achievement of some kind given the fervor for stocks in general recently. Here they are: Dow. The historic chemicals company, headquartered in Midland, Michigan, has a market capitalization of $43.71 billion dollars and an enterprise value of $57.23 billion. At a time when the price-earnings ratio for the S&P 500 is 39, it’s semi-amazing that Dow’s p/e is all the way down there at 7. The company’s price to book metric is 2.66, a reasonable figure given that the S&P 500’s price to book now comes in at 4.
