ASX 200 stocks with the best fundamentals: Dividend yield, PE Ratio, PEG Ratio – Week 43

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 22 October.

KEY DATA – VALUE-BASED METRICS

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

ASX 200: 20 lowest P/E Ratios (

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.

How our data helps you decide 🧐

Firstly, we show you the most current forward consensus estimate of P/E Ratio in our tables, but also the next-most current forward estimate of P/E Ratio. This way you can see if a stock's P/E Ratio is expected to fall over the next two reporting periods – which implies the market is expecting EPS growth ✅.

Even better, 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).

Finally, the PEG Ratio helps alleviate some of the risks of relying on P/E Ratio alone by incorporating forecast earnings growth, offering a clearer picture of whether a stock’s valuation is truly justified. Keep scrolling to investigate this data 👇.

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

Top 20 ASX 200 Stocks by PEG Ratio

ASX 200: 20 lowest PEG Ratios (

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.

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

KEY DATA – RETURN-BASED METRICS

Top 20 ASX 200 Stocks by Grossed-Up Dividend Yield

ASX 200: 20 highest Grossed-Up Dividend Yields (click here for full size image)

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.

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