 In the current market session, Puxin Inc. NYSE: NEW is trading at 6.24, after a 2.30 spike. However, over the past month, the stock fell by 2.50, and in the past year, by 6.86. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session.The stock is currently above from its 52 week low by 72.38. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Education Training Services stocks, and capitalize on the lower share price observed over the year.The PE ratio is used by long-term shareholders to assess the companys market performance against aggregate market data, historical earnings, and the industry at large. A lower PE indicates that shareholders do not expect the stock to perform better in the future, and that the company is probably undervalued. It shows that shareholders are less than willing to pay a high share price, because they do not expect the company to exhibit growth, in terms of future earnings.Most often, an industry will prevail in a particular phase of a business cycle, than other industries.Compared to the aggregate PE ratio of the 38.12 in the Education Training Services industry, Puxin Inc. has a lower PE ratio of 0.0. Shareholders might be inclined to think that they might perform worse than its industry peers. Its also possible that the stock is undervalued.There are many limitations to price to earnings ratio. It is sometimes difficult to determine the nature of the earnings makeup of a company. Shareholders might not get what theyre looking for, from trailing earnings.See more from Benzinga A Look Into Meta Financial Groups Price Over Earnings Price Over Earnings Overview: Wah Fu Education Group Morning Market Stats in 5 MinutesC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 