FXPO, RSE, PDL, TEM, CGEO: Value stocks investors may consider now

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Highlights

  • Value stocks offer investors an opportunity to buy shares below their intrinsic value.
  • Investing in value stocks may be the best solution for those looking for a balance between risk and return.

Value stocks are the stocks that are trading at a lower price as compared to their fundamentals, such as profits, sales, and dividends, making them attractive to investors looking at long-term benefits.

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Value stocks are the stock of companies trading at relatively cheaper rates looking at their future growth prospects and earning ability. These companies have stable, predictable business models with modest growth and offer investors an opportunity to buy shares below their intrinsic value.

Investing in value stocks may be the best solution for investors looking for a balance between risk and return, as these stocks generally rise in price steadily over time and keep their value in the long run. 

Although value stocks claim to do well for your portfolio, it is still important to do your research and check the company’s fundamentals thoroughly. Price-to-Earnings ratio (P/E) and Enterprise Value to EBITDA ratio (EV/EBITDA) indicate if the stock price is overvalued or undervalued. A lower P/E and EV/ EBITDA ratio mean that the stock is undervalued or trading below its intrinsic value.

Related Read: How to invest in penny stocks if recession strikes. 5 options under lens

 Let us look at 5 FTSE-listed value stocks investors may consider now.

 Ferrexpo Plc (LON: FXPO)

The Swiss-based commodity trading and mining company’s shares were up by 9.27% at GBX 190.90, with a market cap of £1,028.33 million at 3 PM (GMT+1), as of 1 June 2022. The FTSE 250-listed company’s share value has depreciated by -57.78% in the last one year. Its EV/EBITDA ratio was 0.91x and its P/E ratio was 1.49x, as of 1 June 2022.  

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  1. Riverstone Energy Ltd (LON: RSE)

The shares of the closed-ended investment company were trading at GBX 706.00, up by 0.57%, at 3 PM (GMT+1), as of 1 June 2022. With a market cap of £375.81 million, its shares have given a return of 122.85% over the last one year. Its EV/EBITDA ratios stand at 1.36x and its P/E ratio stands at 1.58x as of 1 June 2022.  

  1. Petra Diamonds Limited (LON: PDL)

With a market cap of £225.27 million, the shares of the diamond mining group were trading at GBX 116.00 at 3 PM (GMT+1), as of 1 June 2022. Petra Diamond’s share has given a return of 62.24% over the last one year. Its EV/EBITDA ratio is 2.37x and its P/E ratio is 0.87x, as of 1 June 2022.  

 

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  1. Templeton Emerging Markets Investment Trust Plc (LON: TEM)

Templeton Emerging Markets Investment Trust Plc’s shares were trading at GBX 154.00, up by 0.52%, at 3 PM (GMT+1), as of 1 June 2022. With a market cap of £1,803.39 million, the FTSE 250-listed company’s share value has depreciated by 23.79 over the last one year. Its EV/EBITDA ratio was at 1.46x, while the P/E ratio was 1.54x, as of 1 June 2022.  

Related Read: Warren Buffett’s three key investing mantras for millennials

Georgia Capital Plc (LON: CGEO)

With a market cap of £298.84 million, the share of the UK-based electric services company was trading at GBX 662.00, up by 1.22%, as of 1 June 2022. Georgia Capital’s share has given a return of 8.52% over the last one year. Its EV/EBITDA ratio is 1.59x and its P/E ratio is 1.59x, as of 1 June 2022.  

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


 

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