By Mohammed Abu Meleeh
Riyadh-Mubasher: Tadawul All-Share Index (TASI) has plunged 14.93% in January, which indicates that some stocks reached attractive levels.
The corporate reporting season ended last week, which had a significant impact on the P/E ratios of some companies.
The P/E ratio is one of the indicators which help investors know whether the stock is attractive. If the P/E ratio is less than 10x, the stock price is attractive for investors. However, they should also take into account the other indicators of the company.
A total of 40 Tadawul-listed companies have P/E ratios less than 10x, according to closing prices on 28 January. The cement sector led with 10 companies, followed by the banking sector with nine stocks, with Bank AlJazira on the top.
On the other hand, there are 18 stocks whose P/E ratios are more than 50x such as Saudi Reinsurance whose earnings dropped by 98.99% and Advanced whose profits were 78.22% down.
In addition, there are 34 stocks recorded negative P/E ratios such as Mobily, Zain, Petro Rabigh, Research and Marketing, Tasnee and Knowledge City.
Translated by Abdul Maguid Aboshahla
