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Alberto Abaterusso
Alberto Abaterusso
Articles (2608) 

A Trio of Stocks With Low Shiller Price-Earnings Ratios

Toyota Motor makes the list

November 04, 2020 | About:

Screening for stocks with compelling Shiller price-earnings ratios increases the likelihood of unearthing value opportunities. Thus, investors may want to consider the following stocks, as their Shiller price-earnings ratios are trading below the S&P 500 Index's historical average of 16.75 as of Nov. 3.

Industrial and Commercial Bank of China

The first company under consideration is Industrial and Commercial Bank of China Ltd. (IDCBY), a Chinese bank providing various financial products and services to individuals and businesses.

The company has a Shiller price-earnings ratio of 6.12, which is the result of an American depository receipt price of $11.87 as of Nov. 3 and inflation-adjusted earnings per ADR of $1.94 on average every year over the past 10 years. The industry has a median of 11.11 for the Shiller price-earnings ratio.

The ADR price has declined by 19.5% over the past year for a market capitalization of $211.53 billion and a 52-week range of $10.16 to $15.63.

GuruFocus has assigned a rating of 4 out of 10 to the company's financial strength and of 5 out of 10 to its profitability.

As of October, the stock has a median recommendation rating of overweight with an average target price of $5.05.

Toyota Motor

The second company to consider is Toyota Motor Corp. (NYSE:TM).

The Japanese automaker has a Shiller price-earnings ratio of 12.85, which results from an ADR price of $135.87 as of Nov. 3 and inflation-adjusted earnings per ADR of $10.57 on average every year over the past 10 years. The industry has a median of 13.31 for the Shiller price-earnings ratio.

The ADR price has declined by 3.5% over the past year, determining a market capitalization of $189.94 billion and a 52-week range of $108.01 to $145.41.

GuruFocus has assigned a rating of 5 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

As of October, the stock has a median recommendation rating of overweight with an average target price of $147.63.

China Construction Bank

The third company under consideration is China Construction Bank Corp. (CICHY), a Chinese bank providing various financial services to individuals and businesses.

China Construction Bank has a Shiller price-earnings ratio of 6.44, which is the result of an ADR price of $14.59 as of Nov. 3 and inflation-adjusted earnings per ADR of $2.27 on average every year over the past 10 years.

The stock has fallen by 11.6% over the past year, which determined a market capitalization of $182.38 billion and a 52-week range of $12.65 to $17.73.

GuruFocus has assigned a rating of 3 out of 10 to the company's financial strength and of 4 out of 10 to its profitability.

As of October, the stock has a median recommendation rating of buy with an average target price of $7.26.

Disclosure: I have no positions in any securities mentioned in this article.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master\\\'s Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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