In the current session, Ecopetrol Inc. (NYSE:EC) is trading at $7.92, after a 0.38% drop. Over the past month, the stock decreased by 3.17%, and in the past year, by 33.60%. With performance like this, long-term shareholders are more likely to start looking into the company's price-to-earnings ratio.

Ecopetrol P/E Ratio Analysis in Relation to Industry Peers

The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E could indicate that shareholders do not expect the stock to perform better in the future or it could mean that the company is undervalued.

Ecopetrol has a lower P/E than the aggregate P/E of 14.33 of the Oil, Gas & Consumable Fuels industry. Ideally, one might believe that the stock might perform worse than its peers, but it's also probable that the stock is undervalued.