ASX 200 stocks with the best fundamentals: Dividend yield, PE Ratio, PEG Ratio – Week 48

Welcome to ASX 200 Data Insights: Fundamentals. At Market Index we continuously maintain an extensive database of critical financial and performance data for the Australian share market. You can find much of this data in the dedicated pages in “Stock Scans” and “Popular Pages” in the main menu above, or in our Data Insights category.

In this edition of Data Insights, we aim to bring you a summary of some of the most interesting fundamental data we’ve collected for the stocks listed in the S&P/ASX 200. The main criteria of focus are:

KEY DATA – VALUE-BASED METRICS:

• 1-yr & 2-yr Forward Price-to-Earnings Ratio (“P/E Ratio”)

• 1-yr & 2-yr Forward Price/Earnings-to-Growth Ratio (“PEG Ratio”)

KEY DATA – RETURN-BASED METRICS:

• 1-yr & 2-yr Forward Dividend Yield (“DY”) & Grossed-Up Dividend Yield ("GUDY")

Don’t worry if all these datapoints seem like a different language! For each category, we’ll provide an explanation of what it does, its importance, and how to practically use it to compare stocks across the ASX 200. All of our data is accurate at the time of publication, and is based on the close of trading on Wednesday 26 November.

How our data helps you decide 🧐

1. If a stock is highlighted in green, it means it is a new entrant to a particular list ✅.

2. We show you the most current forward consensus estimate in our tables, but also the next-most current forward estimate. This way you can see if a stock's fundamental metric is expected to improve over the next two reporting periods ✅.

3. We've colour coded the next-most forward estimates in all of our tables to indicate a favourable change in a future metric in GREEN (e.g., P/E Ratio or PEG falling, Grossed-Up Dividend Yield rising), a neutral future metric in ORANGE, and an unfavourable change in a future metric in RED (e.g., P/E Ratio or PEG rising, Grossed-Up Dividend Yield falling) ✅.

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KEY DATA – VALUE-BASED METRICS

Top 20 ASX 200 Stocks by P/E Ratio - LOWEST

P/E Ratio Sector Comp’s (selected stocks)

Financials

Resources & Energy

Other majors

To help you compare stocks within the same sector: CD = Consumer Discretionary, CS = Consumer Staples, H = Healthcare, I = Industrials, IT = Information Technology, RE = Real Estate, T = Telecommunications Services, U = Utilities

This Week's P/E Ratio Observations 🧐

• Top 20 INS

  • No ins or outs to the Top 20 Lowest P/E Ratio list this week, as the broader market settled down following heavy falls in the the first 3 weeks of November.

• Movers

  • For the most part, P/E Ratios generally rose over the last week as share prices rallied in the general absence of commensurate forecast earnings improvements.

  • There were a few movers, however, as most stocks traded places up or down by a couple of spots. Beach Energy (BPT) was the best, moving from 8th spot to 5th.

  • Biggest movers in the wrong direction were Westgold Resources (WGX), which dropped from 11th to 14th, and Perpetual (PPT), which dropped from 14th to 17th.

  • In each case, the moves were share price related and not forecast earnings change related. So, BPT's "value" in theory improved due a fall in its share price, while WGX's and PPT's value in theory deteriorated due to gains respectively in theirs.

What is the P/E Ratio?

The P/E Ratio measures how much investors are willing to pay for each dollar of a company’s earnings. It is calculated by dividing the current share price by earnings per share (EPS). The P/E Ratio is the most widely used valuation tool because:

• Simplicity → It’s easy to calculate (Price ÷ EPS) and quick to interpret.

• Availability → EPS and share prices are universally reported, so the data to calculate P/E Ratio is always at hand – but so too are P/E Ratios themselves on most major market information sites (including Market Index!).

• Comparability → It allows straightforward comparison across companies, sectors, and time periods.

• Investor familiarity → P/E has become a common shorthand in markets, quoted daily in media and research reports.

While simple and widely used, the P/E Ratio is only meaningful when interpreted in context, particularly relative to peers, growth prospects, and when reliable forward EPS estimates are used.

How to interpret P/E Ratios 🔎

• High P/E → GOOD if strong future growth justifies it || BAD if based on overly optimistic assumptions.

• Low P/E → GOOD if it signals undervaluation (i.e., assuming at least a stable EPS growth outlook) || BAD if it reflects weak or declining earnings (i.e., likely a “Value Trap”! ⚠️).

Important! Beware the low P/E Ratio “Value Trap”! ⚠️

A low P/E based on historical data may appear attractive, but it may only be low because the share price (P) is reflecting expectations of a much lower future EPS. A “Value Trap” occurs when a stock looks cheap on paper, but its low P/E Ratio reflects structural problems or deteriorating earnings power. Investors lured by this illusion risk underperformance. Using reliable forecast EPS data helps avoid such value traps by ensuring valuation comparisons using P/E Ratios are tested against expected earnings, not outdated financials.

Top 20 ASX 200 Stocks by PEG Ratio

PEG Ratio Sector Comp’s (selected stocks)

Financials

Mining & Energy

Other majors

To help you compare stocks within the same sector: CD = Consumer Discretionary, CS = Consumer Staples, H = Healthcare, I = Industrials, IT = Information Technology, RE = Real Estate, T = Telecommunications Services, U = Utilities

This week's PEG Ratio Observations 🧐

• Top 20 INS / OUTS

  • Just the two changes here, Helia Group (HLI) and Sandfire Resources (SFR) are in, trading places near the bottom of the last with the departing Flight Centre Travel Group (FLT) and Perenti (PRN).

• Movers

  • Unlike the previous few weeks, rather quiet again here with companies largely just trading positions on the ladder on the back of relative share price changes rather than major forecast earnings changes.

What is the PEG Ratio?

The PEG Ratio builds on the P/E Ratio by factoring in earnings growth. It is calculated by dividing a company’s P/E Ratio by its expected EPS growth rate, usually based on one-year forecast EPS. This makes it a forward-looking tool that adjusts valuation for growth prospects, helping investors judge whether a stock’s price is justified by its outlook rather than its history. Using reliable forecast data is critical here – flawed or overly optimistic estimates can render the PEG meaningless.

How to interpret PEG Ratios 🔎

• PEG < 0 → Negative growth – Forecast EPS decline.

• PEG < 1.0 → Attractive / undervalued – Forecast EPS growth outweighs price.

• PEG ≈ 1.0 → Fairly valued – Price in line with forecast EPS growth.

• PEG 1.0–2.0 → Expensive – Investors are paying a premium based on forecast EPS growth.

• PEG > 2.0 → Very expensive – Price only justified if much stronger actual EPS growth emerges.

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KEY DATA – RETURN-BASED METRICS

Top 20 ASX 200 Stocks by Grossed-Up Dividend Yield

Dividend Yield Sector Comp’s (selected stocks)

Financials

Mining & Energy

Other majors

To help you compare stocks within the same sector: CD = Consumer Discretionary, CS = Consumer Staples, H = Healthcare, I = Industrials, IT = Information Technology, RE = Real Estate, T = Telecommunications Services, U = Utilities

This week's dividend yield observations 🧐

• Top 20 INS / OUTS

  • Nil! 🥱

• Movers

  • Again, very quiet! But here's one little nugget: BHP Group (BHP)'s dividend yield improved from 3.6% p.a. last week to 3.7% p.a. this week even though its share price rose 2%. This is due to a 6.3% increase in its forecast dividend yield for the current financial year – the biggest improvement across the ASX 200 for the week.

What is Dividend Yield?

The Dividend Yield measures the annual dividends paid to shareholders relative to the share price. It is calculated by dividing dividends per share (DPS) by the current stock price. Dividend Yield gives investors a quick gauge of income return, making it a popular metric for income-focused strategies. However, relying solely on historical dividends can be misleading, as past distributions may not be sustainable. Reliable forecast DPS data is crucial, since payout levels depend on future earnings, cash flow, and board policy.

How to interpret dividend yields

• High yield → GOOD if sustainable (i.e., supported by at least a stable EPS growth outlook) || BAD if based on overly optimistic assumptions or if it signals distress or an unsustainable payout (i.e., potentially a Value Trap).

• Low yield → GOOD if it reflects reinvestment into profitable EPS growth || BAD for income-seekers relying predominantly on steady distributions (these stocks tend to be "growth stocks" that deliver greater capital returns and lower or nil income returns).

• Grossed-Up Dividend Yield adjusts for franking credits in Australia, reflecting the pre-tax value of dividends by including the associated tax credits, giving investors a truer measure of a stock’s dividend return.