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BHP Billiton passes 3 / 9 of the David Dreman Low PE Screen Strategy.

History
David Dreman Low Price to Equity is a value strategy developed by the renowned US fund manager and author David Dreman in his book Contrarian Investment Strategies. It uses a basic value filter of selecting the cheapest 40% of the market by P/E ratio and filtering further for quality according to company size, financial strength and growth. Dreman favoured the P/E strategy above all others: "Our money management firm uses the low-PE method as it's core strategy, but also utilizes the other 3 contrarian strategies extensively." Dreman's studies showed that the cheapest 20% of the market by P/E outperformed the most expensive 20% by 6.7% annually. It should be cautioned that Dreman's portfolio did suffer in the 2008 financial crisis due to an overweighting of low P/E banks. Dreman though continues to evangelise the power of contrarian investing to counter behavioural biases. more »

FAIL

Rank ( P/E ) > 60%

PASS

Sales £m > 100

FAIL

Debt To Assets < Median

PASS

Current Ratio > 1

FAIL

Net Mgn % > Median

FAIL

ROE % > Median

FAIL

EPS Gwth % > Median

FAIL

Yield % > Median

PASS

Industry Group not in Collective Investments,

FAIL

Qualifies in the top 200 stocks sorted by
P/E ascending

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