ASX 200 stocks with the best fundamentals: Dividend yield, PE Ratio, PEG Ratio – Week 49
ASX 200 Data Insights series brings you the latest data on key value, profitability and performance metrics for Australia’s biggest stocks.
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Mentioned
KEY POINTS
- Treasury Wine Estates (TWE) has slipped down the P/E Ratio list, suggesting lesser value in its current share price, while Metcash's (MTS) grossed-up dividend yield has improved to over 7% – for all the wrong reasons!
- Commonwealth Bank of Australia's (CBA) grossed-up dividend yield has edged back above 5.0% while BHP Group's (BHP) consensus forecast grossed-up dividend yield has dipped below 5.0%. Why? Check out our comprehensive dividend yield tables!
- In ASX 200 Data Insights: Fundamentals, 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.
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 3 December.
How our data helps you decide 🧐
If a stock is highlighted in green, it means it is a new entrant to a particular list ✅.
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 ✅.
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) ✅.
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 / OUTS
No change this week
Movers
Mainly just shuffling the deck, but Treasury Wine Estates (TWE) slipped from 11th to 14th place. A combination of factors here: TWE's share price is up around 1% from last week (i.e., ⬆️P in P/E) but it's consensus forecast FY26 earnings pre share has also come down by 5.9% (i.e., ⬇️E in P/E). This resulted in TWE's consensus forecast FY26 P/E Ratio rising to 10.4x from 9.7x last week.
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
A few changes here because I changed one of the filters for the Top 20 table to allow stocks with PEG Ratios less than 0.1 (but greater than 0). My original view is that as you get closer to 0 for PEG Ratio, you're more likely to encounter value traps. I've had a change of thinking on this item – now "well, that's the data as we receive it – buyer beware!".
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.
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
Just the one change here, Centuria Capital Group (CNI) replaces Aurizon Holdings (AZJ). No changes in either company's forecast dividends, simply price moves (AZJ ⬆️ vs CNI ⬇️).
Movers
Metcash (MTS) is the only stock that moved up or down by more than one place – up to 15th from 19th. A similar story to TWE here. MTS's price has plunged during the week (⬇️P in D / P), but it's consensus forecast FY26 dividend has also been cut by 3.4% (⬇️D in D / P). Its consensus forecast FY26 grossed up dividend yield has increased to 7.1% from 6.7% last week due to the fact that ⬇️P is proportionally greater than ⬆️D. The question is, does the fact that P and D are both ⬇️ make it a more or less attractive investment opportunity! 🤔
A couple of interesting blue chip movers here: Commonwealth Bank of Australia's (CBA) grossed-up dividend yield has edged back above 5.0% (due to its share price fall and not a change to its consensus forecast FY26 dividend), while BHP Group's (BHP) consensus forecast grossed-up dividend yield has dipped below 5.0% (to 4.9% from 5.3%) due to a combination of a rising share price, but also a 5.8% cut in its consensus forecast FY26 dividend.
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.
