Despite the S&P/ASX 200 Index (ASX: XJO) rebounding 33.5% in the last year, there's still plenty of shares that remain beaten down.
While there are shares on the ASX that look expensive, the price-to-earnings (P/E) ratio can be useful to make a rudimentary assessment of value.
So, let's take a look at a few shares in the ASX 200 that are currently trading on relatively cheap earnings multiples — in addition to having a beaten-down share price.
ASX 200 shares trading at a discount
St Barbara Ltd (ASX: SBM)
This ASX-list gold mining company has been unloved over the last year. The St Barbara share price is down 12.5% from 12 months ago, and 28% lower in the last 6 months.
Being a gold mining company in the ASX 200, St Barbara's share price is loosely tied to the value of the precious metal. Comparatively, the gold spot price has fallen 12.6% in the last 6 months. However, the price of gold has risen 5% in the past year.
Furthermore, St Barbara increased its earnings 26.7% from $100.26 million to $127.03 million, between 2019 and 2020. Due to the company's earnings increasing while its share price tumbled, its earnings multiple has contracted to 11.6 times. For comparison, the metals and mining industry average is 13.3 times.
Austal Ltd (ASX: ASB)
The ASX 200 included Australian shipbuilder has fallen out of favour in recent times. This is reflected in the share price falling 15.8% in the past 12 months, and 22% in the last 6 months.
Austal has been integral in providing the US Navy and Australian Border Force with vessels. Hence, the news of America and Australia withdrawing from Afghanistan might have investors concerned. Regardless, the company is proceeding with the construction of a ship-building facility in Alabama, USA.
In its recent FY21 half-year report, Austal witnessed a 29% increase in its net profits on the prior corresponding period (pcp) to $52.4 million. With growing profits and a declining share price, Austal's P/E ratio has reduced to 8.8 times — the lowest it has been since 2013 (disregarding negative periods).
Regis Resources Ltd (ASX: RRL)
Another gold miner on the list — Regis has suffered a heft 31% selloff over the last year. On a 6-month timescale, the Regis share price is down 41% — definitely passing the beaten-down criteria.
Looking at the financials, Regis has reasonably stable profits over the last few years. These range between $161 million to $200 million in earnings. During this period the gold miner has managed to grow its revenue from $590 million to $786 million. This has further potential to increase, with Regis acquiring a $900 million stake in the Tropicana gold project.
Analysts at Morgans believe the Tropicana acquisition will be transformational for the company's long-term outlook. According to a recent note, the broker holds an add rating with a price target of $4.01. At the time of writing, the Regis Resource share price is trading at $2.79. The company is also trading at a discount to ASX 200 peers, trading on a 7.3 times P/E multiple.
