At the start of this month, I highlighted 4 large cap (so-called) blue chips that appeared extremely cheap.

Here are 6 cheap small-cap companies, with very low P/E ratios, that appear to have been completely missed by the market – or perhaps there’s a very good reason that the shares appear cheap.

TFS Corporation Limited (ASX: TFC)

The Indian sandalwood plantation manager and sandalwood producer has a P/E ratio of just 5.7% at the current price of $1.44. In the 2016 financial year, TFS Corp produced a net profit of over $90 million, compared to its current market cap of $559 million, but as I noted two weeks ago, the company’s actual cash profit was just $14.1 million, with most of the profit coming from accounting gains. That places TFC Corp on a P/E ratio of 39x – not exactly cheap by any standards.

Cedar Woods Properties Limited (ASX: CWP)

The property developer’s shares are currently trading on a P/E of 8.8x, after producing a profit of $43.6 million in the 2016 financial year. Additionally, shareholders are getting a fully franked dividend of 5.8% and the bonus is that the company expects to report a similar profit in 2017 as it did in 2016. I’ve written about Cedar Woods numerous times before and how it appears attractive, and the market has yet to catch on.

United Overseas Australia Limited (ASX: UOS)

United Overseas is a neglected stock on the ASX – most likely because the majority of its assets are holdings in property companies located in Malaysia. The shares almost always trade at a discount to its net tangible assets (84 cents at the end of June 2016 compared to a share price of 61 cents) and UOS reported a half-year net profit of $55 million. Yet its market cap is just $334 million. Add in a decent 4.9% dividend (unfranked) and UOS looks very attractive.

Peet Limited (ASX: PPC)

Another property developer, Peet’s shares are trading on a P/E ratio of 11.5x – not as cheap as the 3 companies above, but still cheap compared to the market. With a market cap of $487 million and a net profit of $42.6 million, Peet’s shares look cheap, particularly with the company forecasting earnings growth in FY2017 supported by the economic environment. A fully franked 4.5% dividend is also on offer.

Elders Ltd (ASX: ELD)

The rural services company is trying to attract investors back to it after a number of years in the wilderness. Elders had turned itself into a jack-of-all-trades and its business into a mess and has taken the better part of 3 years to sort itself out. But a revived business, clearer strategy and cleaner focus still see the company’s shares trade on a P/E ratio of just 8x, despite a net profit of $19.4 million for the six months to end of March 2016 – up 20% over the previous year. A stronger second half is also forecast.

Donaco International Ltd (ASX: DNA)

The operator of two small casinos in Asia, Star Vegas in Cambodia and the Aristo International Hotel in Vietnam, Donaco has a market cap of $395 million and recently announced its first-ever dividend for shareholders. That came on the back of an underlying net profit of $54.4 million, placing the company on a P/E of 7.3x. The company says it expects to continue growing earnings in the year ahead with a number of new initiatives in place. Perhaps the market thinks the shares are too risky – hence the low P/E ratio.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.