CSL Ltd (ASX: CSL) is among several ASX 200 shares trading on forward price-to-earnings (P/E) ratios below the current market average, new data shows.
The forward P/E shows how expensive or cheap an ASX share is relative to the company's expected earnings over the next 12 months.
A forward P/E of 20x, for example, means investors are willing to pay $20 for every $1 of anticipated profit.
Macquarie says the S&P/ASX 300 Industrials Index currently has a P/E of 20.1x, which is equal to its post-COVID boom high.
(This index excludes the more volatile energy sector and the mining and metals segment of the materials sector.)
Macquarie says the ASX average P/E is high because interest rate cuts around the world have brought new liquidity into global markets.
So, how do you identify ASX 200 shares that offer good value in an environment like this?
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10 ASX 200 shares with P/Es below the market average
In the earnings season wash-up, top broker Macquarie has identified several ASX 200 shares now trading on lower forward P/Es than the market average.
This could make them attractive buys for value-focused investors.
To help us better understand each stock's current P/E, Macquarie has published both the forward P/E and the standard deviation for each.
The standard deviation indicates how far the forward P/E is from an ASX share's historical average.
A low standard deviation indicates the stock is trading close to its typical P/E.
A high standard deviation suggests it's unusually expensive or cheap relative to its history.
CSL Ltd (ASX: CSL)
The CSL share price has fallen to a 6-year low following the release of the company's FY25 report last month.
CSL shares closed at $208.37 on Tuesday, down 0.9%.
According to Macquarie's data, the market's largest ASX 200 healthcare share now has a forward P/E of 19.1x.
This P/E is well below CSL's historical norm, sitting 2.3 standard deviations lower than usual.
Qantas Airways Ltd (ASX: QAN)
The Qantas share price closed 1.13% higher at $11.62 on Tuesday.
The ASX 200 blue-chip airline share has a forward P/E of 9.4x.
While this is below the broader market average of 20.1x, it's 0.5 standard deviations above the historical norm for Qantas shares.
ANZ Group Holdings Ltd (ASX: ANZ)
The ANZ share price closed 0.27% lower at $33.48 yesterday.
The ASX 200 blue-chip bank share has a forward P/E of 15.1x.
While that's lower than the market average, it's 2.8 standard deviations higher than the stock's historical norm.
AGL Energy Limited (ASX: AGL)
The AGL share price closed 0.72% lower at $8.22 on Tuesday.
This ASX 200 utilities share has a forward P/E of 9.3x.
That's 2.3 standard deviations below AGL's historical norm.
Insurance Australia Group Ltd (ASX: IAG)
The IAG share price closed 0.23% higher at $8.78 on Tuesday.
This ASX 200 blue-chip financial share has a forward P/E of 19.5x.
While that's lower than the market average, it's 1.5 standard deviations higher than IAG's long-run norm.
AMP Ltd (ASX: AMP)
The AMP share price closed 0.6% lower at $1.67 on Tuesday.
This ASX 200 financial share has a forward P/E of 14.9x.
While that's lower than the market average, it's 0.7 standard deviations higher than AMP's historical norm.
Amcor CDI (ASX: AMC)
The Amcor share price closed at $13.16 on Tuesday, up 0.38%.
This ASX 200 materials share has a forward P/E of 10.4x.
That's vastly below its long-term average, sitting 3.3 standard deviations lower.
Credit Corp Group Ltd (ASX: CCP)
The Credit Corp share price closed 0.55% lower at $16.19 on Tuesday.
This ASX 200 financial share has a forward P/E of 10.5x.
That's well below its historical norm, sitting 1.2 standard deviations lower.
Aurizon Holdings Ltd (ASX: AZJ)
Aurizon shares finished the session yesterday at $3.22, up 0.31%.
This ASX 200 industrial share has a forward P/E of 13.1x.
That's well below its historical norm, sitting 1 standard deviation lower.
IPH Ltd (ASX: IPH)
IPH shares closed at $4.38 yesterday, down 1.79%.
This ASX 200 industrial share has a forward P/E of 9.4x.
That's far beneath its historical norm, sitting 2.5 standard deviations lower.
