In a market that is meant to be so overvalued, why do some companies still have such low P/E’s?

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When people say overvalued, you have to keep in mind that different industries have different valuation ratios. And companies all have historical valuation metrics. So always compare stocks to their industry valuation metrics and their historical valuation metrics. As to why stocks have low valuation metrics? For a variety of reasons. Under the radar company, stagnant growth, decreasing industry, flawed business strategy, questionable future, risk of bankruptcy, etc. Valuation shouldnt be the deciding factor. Companies like Amazon had large valuation metrics that scared investors off. Sometimes it’s worth paying up for quality investments instead of dumpster diving. However, there are also plenty of examples of low PE stocks growing and/or expanding their multiple and making a really nice return.

Pittsburgher23

Usually equates to stagnant revenue growth.

discovery999

Arcelor sold a huge chunk of their revenue stream. Forward earnings are going to be quite a bit lower.

ahminus

Always look at forward earnings. This is definitely the most common mistake I see on here

TwoMe

ArcellorMittal current PE is 14 . forward PE is 3.7. Of steel producers, Arcellor has the highest marketcap. Median PE for global steel producers is 31. ArcellorMittal has returned 168% over the past 12 months and has a €34.58 price target.

kallenkozukii