Value Buys? SBI, Tata Motors among 7 Nifty stocks with lowest P/E ratio

The price-to-earnings ratio or P/E ratio, helps compare the price of a stock to the earnings that the company generates. This ratio is determined by dividing the index’s price per share by its earnings per share. A high PE ratio signifies that the stock is expensive, while a low PE ratio indicates that it is undervalued compared to earnings and the share price could rise in the future. Normally, the average P/E ratio falls between 20 to 25 and anything below is considered a good PE ratio. Here are 7 Nifty stocks with the lowest P/E ratios: