6 ASX 200 shares trading on P/E ratios below 10 right now

Our six examples include mining shares, an airline stock, and retail shares.

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With the latest earnings season behind us, perhaps you're scouting around looking for some S&P/ASX 200 Index (ASX: XJO) shares that might be worth researching and potentially investing in?

Here at The Fool we recommend that investors conduct a fundamental analysis as part of their research and decision-making processes as to which ASX shares to buy.

This means looking over the major financial metrics of a company to determine if its current share price is overvalued, undervalued, or just right.

One of those metrics is the price-to-earnings (P/E) ratio.

As we explain in Motley Fool's Education Centre, the P/E ratio — also called the 'earnings multiple' or 'price multiple' — measures a company's current share price against its earnings per share (EPS).

What to consider when examining P/E ratios

As a general rule, ASX 200 shares with a P/E below 15 are considered cheap. Those with a P/E above 18 are considered expensive. 

But, of course, nothing is that simple. We need to bear in mind a few things when interpreting P/Es.

For example, a high-quality ASX 200 stock may be deserving of a high share price (and thus a high P/E) because of its growth potential, so this doesn't necessarily indicate you shouldn't buy it.

Conversely, while a low P/E can indicate an undervalued share, it can also mean investors do not expect a high level of earnings growth from that company. 

A company's P/E can also go low after a period of extraordinary earnings due to temporary variables like higher commodity prices.

For example, right now Whitehaven Coal Ltd (ASX: WHC) shares are trading on a silly low P/E of just 2.17. Check out my Fool colleague Seb's explanation as to why this is the case.

When looking at P/Es, also bear in mind that P/E levels can vary between industries. 

Technology stocks, for example, tend to have a higher P/E ratio than ASX 200 retail shares. Thus, P/Es can be very useful in comparing the financial performance of companies within the same industry.

Which ASX 200 shares have P/Es below 10?

In this article, we're focusing on ASX 200 shares representing established businesses. These are not buying recommendations. We're just highlighting six examples of ASX 200 shares with P/Es below 10.

Here are six ASX 200 shares trading on P/Es below 10 right now:

JB Hi-Fi Limited (ASX: JBH) shares are trading on a P/E of 9.45 times. The JB Hi-Fi share price is currently $44.35, down 0.81% for the day so far

Harvey Norman Holdings Limited (ASX: HVN) shares are trading on a P/E of 8.86 times. The Harvey Norman share price is currently $3.815, down 0.65% for the day so far

Woodside Energy Group Ltd (ASX: WDS) shares are trading on a P/E of 6.28 times. The Woodside share price is currently $38.40, down 0.29% for the day so far

Brickworks Limited (ASX: BKW) shares are trading on a P/E of 5.64 times. The Brickworks share price is currently $24.78, down 1% for the day so far

Pilbara Minerals Ltd (ASX: PLS) shares are trading on a P/E of 5.24 times. The Pilbara Minerals share price is currently $4.05, down 0.98% for the day so far

Qantas Airways Limited (ASX: QAN) shares are trading on a P/E of 4.985 times. The Qantas share price is currently $4.985, down 0.7% for the day so far

Motley Fool contributor Bronwyn Allen has positions in Harvey Norman and Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Harvey Norman. The Motley Fool Australia has positions in and has recommended Brickworks and Harvey Norman. The Motley Fool Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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