A value for money ratio is a measure of how much value a stock offers relative to its price. One way to calculate this ratio is to divide the earnings per share (EPS) by the price per share (PPS). The higher the ratio, the more value the stock provides for each dollar invested.
Based on this formula, some of the stocks with the highest value for money ratios as of November 2023 are:
Graphic Packaging Holdings (GPK), a leading provider of paper-based packaging solutions, with a ratio of 0.126. This means that for every $1 invested in GPK, the company generates $0.126 in earnings.
Webster Financial (WBS), a regional bank holding company, with a ratio of 0.152. This means that for every $1 invested in WBS, the company generates $0.152 in earnings.
Lear (LEA), a global leader in automotive seating and electrical systems, with a ratio of 0.123. This means that for every $1 invested in LEA, the company generates $0.123 in earnings.
These are just some examples of value stocks that offer a high return on investment. However, value investing is not just about looking at the numbers. It also involves analyzing the quality, growth potential, competitive advantage, and financial strength of the companies behind the stocks. You can learn more about value investing and how to find the best value stocks from the following resources:
, a website that provides stock market news, analysis, advice, and recommendations for beginners and experts alike.
, an article that explains how to use the price-to-book (P/B) ratio, another measure of value, to find undervalued stocks.