The P/E ratio is a good indicator of value, with lower P/Es tending to correlate to better value. Kemet has a ratio of 9.4, close to half the industry average of 19.2. The typical value investor looks for a P/E ratio below 20, and seeing as Kemet trades at a discount to this ideal ratio and its industry’s average, we can see why this is considered an “A” value stock.