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PE
P/E Relative ScreenValue

Identify value stocks with the P/E Relative Screen, focusing on companies with attractive price-to-earnings ratios for potential high returns.

ValueEarnings Estimates
YTD
+5.6%
5Y
+50.3%
10Y
+217.6%
15Y
+330.6%
Total backtested return over each period.
Cumulative backtested growth
P/E Relative Screen
+2,029%199820122026+3,757%
Growth of the screen since inception. Past performance does not guarantee future results.
86 of 86 stocks
Rank↑
Company
Exchange
Price
Price as % of 52 Week High
EPS-Diluted Continuing 12m
EPS Est Y0
EPS Growth Est
PE
PE Relative Avg-5 year
PE Relative Adjusted P/E
PE Relative Valuation
PE Relative Valuation % Price
1
ADUSAddus HomeCare Corporation
NASDAQ
114.52
92.0
5.42
7.00
11.7
21.1
1.59
31.38
170.07
0.67
2
ABAllianceBernstein Holding L.P.
NYSE
37.90
85.9
3.22
3.51
8.9
11.8
0.72
14.32
46.15
0.82
3
ALSNAllison Transmission Holdings, Inc.
NYSE
113.60
82.5
6.43
9.97
18.8
17.7
0.53
10.41
66.89
1.70
4
AMRCAmeresco, Inc.
NYSE
23.11
51.4
0.59
1.10
11.5
39.2
1.91
37.76
22.24
1.04
5
ADIAnalog Devices, Inc.
NASDAQ
375.36
84.2
6.72
12.40
26.5
55.9
2.44
48.35
324.79
1.16
6
AAPLApple Inc.
NASDAQ
333.74
99.6
8.25
8.76
13.2
40.5
1.60
31.66
261.16
1.28
7
ANETArista Networks, Inc.
NYSE
168.61
88.8
2.91
3.64
19.9
57.9
1.85
36.66
106.68
1.58
8
APAMArtisan Partners Asset Management Inc.
NYSE
38.51
79.5
3.98
3.84
9.7
0.63
12.56
50.06
0.77
9
AUBAtlantic Union Bankshares Corporation
NYSE
42.65
97.8
2.35
3.74
18.1
0.76
15.12
35.58
1.20
10
ATOAtmos Energy Corporation
NYSE
177.68
92.3
8.20
8.45
8.0
21.7
1.12
22.16
181.66
0.98
11
ADPAutomatic Data Processing, Inc.
NASDAQ
255.26
80.8
10.72
11.07
23.8
1.75
34.75
372.36
0.69
12
AZZAZZ Inc.
NYSE
147.21
90.8
6.56
7.05
13.0
22.4
1.22
24.13
158.24
0.93
13
BDCBelden Inc.
NYSE
101.39
63.4
5.95
8.29
17.0
0.84
16.63
98.89
1.03
14
BFSTBusiness First Bancshares, Inc.
NASDAQ
30.89
97.9
2.82
3.01
11.0
0.53
10.57
29.76
1.04
15
KMXCarMax, Inc.
NYSE
57.33
89.9
1.54
2.67
33.2
37.3
1.42
28.16
43.31
1.32
16
CLSCelestica Inc.
NYSE
301.34
63.6
8.26
10.30
45.3
36.5
0.75
14.91
123.10
2.45
17
CBCCentral Bancompany, Inc.
NASDAQ
31.68
98.2
1.78
1.92
8.9
17.8
0.61
12.06
21.47
1.48
18
CQPCheniere Energy Partners, L.P.
NYSE
62.38
88.3
4.28
4.49
-11.1
14.6
0.69
13.65
58.45
1.07
19
FIXComfort Systems USA, Inc.
NYSE
1,674.1
80.7
34.65
43.63
37.0
48.3
1.05
20.70
717.46
2.33
20
CBSHCommerce Bancshares, Inc.
NASDAQ
59.14
94.7
4.07
4.28
5.8
14.5
0.89
17.68
71.85
0.82
21
CWBCCommunity West Bancshares
NASDAQ
27.16
96.4
2.16
2.64
12.6
0.86
16.99
36.71
0.74
22
COSTCostco Wholesale Corporation
NASDAQ
940.87
85.8
19.88
20.57
11.0
47.3
2.46
48.73
968.76
0.97
23
CRCrane Company
NYSE
217.49
96.0
5.46
6.81
10.0
39.8
1.73
34.17
186.55
1.17
24
CSXCSX Corporation
NASDAQ
50.75
99.0
1.63
1.95
14.8
31.1
1.07
21.20
34.58
1.47
25
DGDollar General Corporation
NYSE
125.75
79.5
7.07
7.37
8.0
17.8
1.13
22.43
158.60
0.79
26
DLTRDollar Tree, Inc.
NASDAQ
125.94
88.4
6.22
6.97
12.7
20.2
1.15
22.73
141.47
0.89
27
ETNEaton Corporation plc
NYSE
399.99
91.6
10.22
13.35
7.4
39.1
1.54
30.41
310.88
1.29
28
ELVElevance Health, Inc.
NYSE
373.11
85.5
23.52
27.11
3.6
15.9
0.98
19.40
456.13
0.82
29
EMEEMCOR Group, Inc.
NYSE
744.16
78.2
29.81
29.35
39.5
25.0
0.89
17.63
525.60
1.42
30
EXPDExpeditors International of Washington, Inc.
NYSE
182.80
99.6
6.19
6.85
9.3
29.5
1.05
20.74
128.33
1.42
31
FICOFair Isaac Corporation
NYSE
1,257.1
62.9
31.51
43.14
30.6
39.9
2.91
57.61
1,815.05
0.69
32
FASTFastenal Company
NASDAQ
45.49
89.8
1.13
1.26
11.5
40.3
1.87
36.96
41.77
1.09
33
FSSFederal Signal Corporation
NYSE
116.63
86.7
4.40
4.97
12.0
26.5
1.33
26.31
115.81
1.01
34
FFBCFirst Financial Bancorp.
NASDAQ
35.72
98.6
2.83
3.28
12.6
0.55
10.84
30.67
1.16
35
FFINFirst Financial Bankshares, Inc.
NASDAQ
35.32
91.2
1.84
2.05
4.4
19.2
1.34
26.58
48.91
0.72
36
FRMEFirst Merchants Corporation
NASDAQ
44.59
98.4
3.37
4.26
13.2
0.59
11.67
39.28
1.14
37
FSVFirstService Corporation
NASDAQ
148.46
70.8
3.55
6.17
5.9
41.9
3.28
64.85
229.97
0.65
38
FLNGFLEX LNG Ltd.
NYSE
30.67
91.8
1.38
2.18
22.2
0.62
12.36
17.06
1.80
39
FOXAFox Corporation
NASDAQ
57.62
75.4
3.82
5.00
6.5
15.1
0.75
14.89
56.91
1.01
40
GDGeneral Dynamics Corporation
NYSE
368.58
96.8
15.89
16.68
10.1
23.2
1.07
21.11
335.43
1.10
41
FULH.B. Fuller Company
NYSE
56.96
83.0
3.37
4.87
19.0
16.9
1.42
28.17
95.00
0.60
42
HTOH2O America
NASDAQ
65.43
99.8
2.89
2.75
8.2
22.6
1.44
28.51
82.37
0.79
43
JCIJohnson Controls International plc
NYSE
140.46
92.9
3.26
4.89
19.0
43.1
1.78
35.23
114.78
1.22
44
JLLJones Lang LaSalle Incorporated
NYSE
330.67
91.1
18.61
23.00
17.8
1.07
21.16
393.70
0.84
45
JPMJPMorgan Chase & Co.
NYSE
341.10
97.1
20.88
23.95
9.8
16.3
0.60
11.94
249.35
1.37
46
KAROKarooooo Ltd.
NASDAQ
62.69
94.7
2.02
2.39
17.6
31.0
1.45
28.75
58.17
1.08
47
KLACKLA Corporation
NASDAQ
212.75
69.2
3.53
3.72
20.0
60.2
1.38
27.30
96.44
2.21
48
LSTRLandstar System, Inc.
NASDAQ
211.56
92.6
3.62
5.83
58.4
1.48
29.35
106.27
1.99
49
LIILennox International Inc.
NYSE
543.93
78.9
22.55
24.45
24.1
1.25
24.84
560.33
0.97
50
LPLALPL Financial Holdings Inc.
NASDAQ
324.90
80.5
11.21
23.44
22.0
29.0
1.21
24.01
269.17
1.21
51
MTBM&T Bank Corporation
NYSE
249.24
97.7
17.87
19.34
11.1
13.9
0.64
12.66
226.20
1.10
52
MDUMDU Resources Group, Inc.
NYSE
21.14
92.0
0.92
0.97
7.6
22.9
1.56
30.91
28.50
0.74
53
MMSIMerit Medical Systems, Inc.
NASDAQ
73.99
78.1
2.32
4.07
12.9
31.9
2.95
58.34
135.35
0.55
54
MOHMolina Healthcare, Inc.
NYSE
225.37
92.0
3.60
5.16
7.5
62.6
1.19
23.65
85.13
2.65
55
MUSAMurphy USA Inc.
NYSE
618.57
97.3
28.91
32.63
9.5
21.4
0.75
14.80
427.69
1.45
56
NINiSource Inc.
NYSE
45.98
93.4
2.02
2.06
9.8
22.8
1.07
21.10
42.62
1.08
57
NOCNorthrop Grumman Corporation
NYSE
521.57
67.4
31.95
27.95
7.2
16.3
1.07
21.14
675.42
0.77
58
NVMINova Ltd.
NASDAQ
437.46
71.0
7.96
10.49
17.5
55.0
1.61
31.96
254.31
1.72
59
NUENucor Corporation
NYSE
236.61
87.3
10.09
17.00
23.0
23.4
0.57
11.31
114.08
2.07
60
NXPINXP Semiconductors N.V.
NASDAQ
266.53
78.4
10.46
14.88
18.3
25.5
1.28
25.43
265.94
1.00
61
OFGOFG Bancorp
NYSE
50.07
97.4
4.84
4.73
10.3
0.47
9.35
45.28
1.11
62
ORLYO'Reilly Automotive, Inc.
NASDAQ
86.05
79.2
3.07
3.26
14.0
28.0
1.36
27.01
82.96
1.04
63
PCARPACCAR Inc
NASDAQ
126.20
95.7
4.70
5.72
17.7
26.9
0.82
16.23
76.28
1.65
64
PLMRPalomar Holdings, Inc.
NASDAQ
135.44
91.7
7.17
9.88
18.9
1.55
30.66
219.81
0.62
65
PBAPembina Pipeline Corporation
NYSE
51.29
99.5
1.91
2.16
2.1
26.9
0.91
18.02
34.35
1.49
66
QCOMQUALCOMM Incorporated
NASDAQ
171.78
66.1
9.15
10.81
4.2
18.8
1.15
22.81
208.81
0.82
67
QLYSQualys, Inc.
NASDAQ
159.43
95.0
5.57
7.58
8.5
28.6
2.42
47.92
266.89
0.60
68
RJFRaymond James Financial, Inc.
NYSE
168.36
94.8
10.58
11.97
18.1
15.9
0.77
15.32
162.09
1.04
69
RSReliance, Inc.
NYSE
395.93
94.3
15.32
20.07
16.9
25.8
0.71
14.05
215.19
1.84
70
RYRoyal Bank of Canada
NYSE
215.43
98.6
11.30
11.48
11.0
19.1
0.71
14.12
159.54
1.35
71
SAIASaia, Inc.
NASDAQ
436.85
88.3
9.52
11.44
9.4
45.9
1.58
31.37
298.68
1.46
72
BSRRSierra Bancorp
NASDAQ
42.12
97.7
3.42
3.73
12.3
0.52
10.38
35.50
1.19
73
SNXTD SYNNEX Corporation
NYSE
242.62
81.8
13.96
18.97
19.7
17.4
0.83
16.52
230.57
1.05
74
PNCThe PNC Financial Services Group, Inc.
NYSE
252.86
98.6
17.21
19.23
13.1
14.7
0.70
13.89
239.04
1.06
75
PGRThe Progressive Corporation
NYSE
207.95
81.6
19.66
17.59
-2.0
10.6
1.99
39.33
773.18
0.27
76
SHWThe Sherwin-Williams Company
NYSE
331.32
87.3
10.42
11.74
11.0
31.8
1.92
38.05
396.44
0.84
77
TTTrane Technologies plc
NYSE
469.98
92.9
13.10
14.90
14.9
35.9
1.46
28.89
378.42
1.24
78
TDGTransDigm Group Incorporated
NYSE
1,214.4
74.8
32.03
40.09
14.5
37.9
2.62
51.88
1,661.50
0.73
79
ULTAUlta Beauty, Inc.
NASDAQ
479.57
67.1
26.66
28.77
10.7
18.0
1.00
19.80
527.65
0.91
80
UTHRUnited Therapeutics Corporation
NASDAQ
535.67
87.9
27.07
27.36
9.6
19.8
0.80
15.92
430.87
1.24
81
GWWW.W. Grainger, Inc.
NYSE
1,395.0
98.2
37.16
45.63
11.9
37.5
1.28
25.26
938.66
1.49
82
WCNWaste Connections, Inc.
NYSE
171.91
89.6
4.10
5.51
10.5
41.9
2.87
56.83
233.10
0.74
83
WSOWatsco, Inc.
NYSE
371.91
75.1
12.18
12.79
30.5
1.53
30.22
368.22
1.01
84
WTSWatts Water Technologies, Inc.
NYSE
346.43
87.8
10.93
12.06
8.0
31.7
1.37
27.18
297.07
1.17
85
WFCWells Fargo & Company
NYSE
87.51
89.5
6.48
7.19
13.6
13.5
0.62
12.31
79.72
1.10
86
ZDZiff Davis, Inc.
NASDAQ
53.98
98.6
0.92
5.18
58.6
2.70
53.49
49.26
1.10

Ranked by the P/E Relative Screen screen, updated from the live database. The columns are the exact criteria this strategy screens on. This is research, not investment advice.

Read the full P/E Relative Screen analysis →How the screens work →
The strategy

All you need to know about P/E Relative Screen

What is the P/E Relative Screen?

The P/E Relative Screen is an AAII stock screen built on a simple observation: a price-earnings ratio means little in isolation. A P/E of 15 is expensive for a slow-growing utility and cheap for a fast-growing software firm. Rather than judging the raw number, the P/E Relative Screen measures a stock's price-earnings ratio against a benchmark — the market's P/E and the company's own five-year history. When a stock trades well below its normal relationship to the market, the screen flags it as potentially undervalued. The approach is not proprietary to any single investor; research services such as Value Line have published relative price-earnings figures for decades.

Relative versus absolute P/E

The absolute P/E — price divided by the last twelve months of earnings per share — tells you how many dollars investors pay for each dollar of current profit. The trouble is that the "right" P/E drifts. Market-wide multiples expand and contract with interest rates and sentiment, sectors carry permanently different multiples, and a single company's normal multiple shifts as its growth matures. Comparing two absolute P/Es across time or across industries can mislead.

The relative P/E fixes this by dividing a company's P/E by the market's P/E. A reading of 1.00 means the stock trades exactly in line with the market. Above 1.00 means investors habitually pay a premium, usually for faster growth or lower risk; below 1.00 means a persistent discount. Because the ratio is normalized to the market, it stays comparable even as absolute multiples rise and fall. The screen also measures each stock against its own past: if a company that normally trades at 1.3 times the market multiple suddenly trades at parity, either its prospects have genuinely deteriorated or the market has stopped paying attention. Multiplying the market's current P/E by the stock's average relative P/E yields an adjusted P/E, and multiplying that by earnings per share gives an implied fair value the current price can be checked against.

What the P/E Relative Screen looks for

  • Excludes American Depositary Receipts (ADRs) — foreign companies listed on U.S. exchanges.
  • Excludes stocks traded over the counter (OTC), keeping the more liquid exchange-listed names.
  • At least three analysts publish an earnings estimate for the current fiscal year (Y0), so the consensus rests on more than one opinion.
  • The consensus estimate for the current fiscal year (Y0) is higher than it was a month ago.
  • Upward revisions to the current-year (Y0) estimate outnumber downward revisions, with at least one upward revision.
  • The consensus estimate for the next fiscal year (Y1) is also higher than it was a month ago.
  • Upward revisions to the next-year (Y1) estimate outnumber downward revisions, with at least one upward revision.
  • The current price is less than 75% of the fair value implied by the relative-P/E model — the core cheapness test.
  • The average P/E in each of the last five fiscal years is less than or equal to 100, stripping out distorted "outlier" multiples caused by temporarily collapsed earnings.

Why the P/E Relative Screen can work

A low relative P/E on its own can be a trap — a stock is often cheap for good reason. The screen guards against that by pairing cheapness with a catalyst, and the earnings-estimate rules supply it. Consensus forecasts for both the current and next fiscal year must be rising, with analyst upgrades outnumbering downgrades. Estimate-revision research has long found that stocks whose forecasts are being raised tend to outperform in the following months while those facing cuts lag; analysts tend to move in the direction of, and often ahead of, the market's re-rating. So the screen targets a stock the market has marked down relative to its own history at the moment sell-side sentiment turns up. The relative discount supplies the value; the revisions supply the reason the discount might close.

What to keep in mind

The relative-P/E model rests on one load-bearing assumption: that the company's long-run growth and risk profile has not changed. A stock can trade below its historical relative P/E because the business genuinely deteriorated — a shrinking market, a lost patent, a broken balance sheet — in which case the low multiple is the correct one and reversion never comes. The five-year P/E ceiling and the demand for consistent positive earnings screen out some distortions, but they cannot tell you why a multiple compressed. Relative valuation also inherits whatever mispricing sits inside the market's own P/E; if the whole market is expensive, "cheap relative to the market" still leaves you exposed. Treat the output as a list of candidates whose story you then have to read.

Sources

The relative price-earnings approach as applied in Value Line's Selection & Opinion and similar research services.

American Association of Individual Investors (AAII) — Stock Investor Pro screen definition and commentary.