I was looking through the STI component stocks and I stumbled upon a stock that has a P/E ratio of only 6.4, which got me like,

“Whoa, a low P/E ratio stock on the Straits Times Index… Should I buy?” 

The P/E ratio shows the price for every $1 of earnings the company generates. It shows you the current price of the stock as compared to their earnings per share.

A low P/E ratio shows that the stocks are “cheaper“. More on that below.

It piqued my interest and I went to read on more about Hongkong Land Holdings Limited (SGX: H78). I wanted to compare it with one of its industry peers to see how they are faring. That company would be Centurion Corporation Limited (SGX: OU8).

Hongkong