What is the best stock screener to find undervalued stocks?
StocksToTrade — Best Overall Undervalued Stock Screener
It's also great for screening for undervalued stocks — it has indicators like EPS and P/E ratio built in. Its true strength is in trading though. If you have a strategy balanced between long-term and short-term trading, it's an awesome resource!
- Price-to-earnings ratio (P/E)
- Debt-equity ratio (D/E)
- Return on equity (ROE)
- Earnings yield.
- Dividend yield.
- Current ratio.
- Price-earnings to growth ratio (PEG)
- Price-to-book ratio (P/B)
- Best overall: Motley Fool Stock Advisor.
- Best quant-driven service: Alpha Picks.
- Best for portfolio management: The Barbell Investor.
- Best for a high-caliber team of analysts: Moby.
- Best for disruptive technology: Motley Fool Rule Breakers.
- Clear and understandable business model.
- Favorable long-term prospects.
- Unique competitive advantage.
- Strong earnings.
- High return on equity.
- Stable profit margins.
- Honest leadership.
- ITC Ltd.
- Asian Paints Ltd.
- Sun Pharmaceutical Industries Ltd.
- Avenue Supermarts Ltd.
- Coal India Ltd.
- Varun Beverages Ltd.
- Eicher Motors Ltd.
- Bharat Electronics Ltd.
This backward-looking metric is calculated by dividing a stock's current share price by the past 12 months of actual earnings per share (EPS). The higher the ratio, the more expensive the stock is compared with its earnings, so a relatively low ratio may indicate the stock is undervalued.
That makes TradingView our pick as the best stock screener for global investing. As a stock screener, TradingView has it all, including a solid offering of fundamental, economic, and financial screening criteria and extensive charting functionalities built on advanced HTML5 technology.
Price-earnings ratio (P/E)
A high P/E ratio could mean the stocks are overvalued. Therefore, it could be useful to compare competitor companies' P/E ratios to find out if the stocks you're looking to trade are overvalued. P/E ratio is calculated by dividing the market value per share by the earnings per share (EPS).
| S.No. | Name | P/E |
|---|---|---|
| 1. | Cons. Finvest | 2.50 |
| 2. | West Coast Paper | 4.80 |
| 3. | Andhra Paper | 4.26 |
| 4. | Shreyans Inds. | 3.53 |
Both contain performance numbers and basic fund information, such as fund size and manager information. Both show the top holdings within the fund: Morningstar shows the top 15 funds and Zacks shows the top nine funds. From a financial data perspective, Morningstar typically provides more information.
What is the best stock screener for beginners?
Some of the best free screeners on the web include those offered by Yahoo! Finance, StockFetcher, ChartMill, Zacks, Stock Rover, and Finviz. They all offer users a series of basic and advanced screeners. Many stock screeners offer both basic and advanced, or free and premium, services.
Investing.com is also a very powerful website for stock screening. You can find the list of all the companies trading on NSE and BSE here. There are a number of filters available on INVESTING for screening the stocks like ratios, price, volume & volatility, fundamentals, dividends, and technical indicators.
The rule really is an observation that Buffett has paid ~10x pretax earnings for many of his largest and best deals, ranging from Coca-Cola, American Express, Wells Fargo, Walmart, Burlington Northern, and the more recent Apple investment.
One method is to look at a company's price-to-earnings (P/E) ratio, which is its stock price divided by its earnings per share. If a company's P/E ratio is below that of its competitors or the overall market, then it may be undervalued.
By taking into account revenue, operating expenses, and net profit margin, an investor can determine whether a stock is undervalued or not. If the operating margin and the net profit margin are healthy and the stock valuation is not in accordance, then it can be considered undervalued.
| S.No. | Company | Industry/Sector |
|---|---|---|
| 1. | Tata Consultancy Services Ltd | IT - Software |
| 2. | Infosys Ltd | IT - Software |
| 3. | Hindustan Unilever Ltd | FMCG |
| 4. | Reliance Industries Ltd | Refineries |
| Company | Face Value (in INR) | Price-to-Earnings (P/E) Ratio |
|---|---|---|
| Jindal Drilling Industries | 5 | 24.10 |
| Oil India | 10 | 4.59 |
| REC Ltd | 10 | 6.32 |
| Meghmani Finechem Ltd | 10 | 14.63 |
The Relative Value of AMZN stock (131.7 USD) is 25% less than its price (174.63 USD). AMZN has upside potential of 23% compared to the average analyst price target. AMZN has positive Free Cash Flow for the last twelve months.
P/B. A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. A lower P/B ratio could mean that the stock is either undervalued or something is fundamentally wrong with the company.
| Stock | Expected Change in Stock Price* |
|---|---|
| Tesla Inc. (TSLA) | 61% |
| Mastercard Inc. (MA) | 14.2% |
| Salesforce Inc. (CRM) | 7.2% |
| Advanced Micro Devices Inc. (AMD) | 11.3% |
How do active investors identify undervalued stocks?
By comparing a company's market capitalisation to its net asset value, the PB ratio assesses whether a stock is undervalued or overvalued. A PB ratio below 1 often signifies an attractive investment opportunity.
See why Koyfin's comprehensive data coverage makes it is the obvious alternative to Finviz. With all your data needs covered and no adverts, you have in depth insight and fewer distractions. Win-win.
- Motley Fool is a stock and investing advice service.
- Yahoo! Finance gives financial advice on the markets.
- Zacks is an investment research service.
- FinViz is a fantastic free scanner service.
- YCharts is another investment research service.
Zacks is a good fit for people who are relatively savvy — active investors but aren't yet ready to go it entirely alone and might want a little hand-holding and/or a backup plan for their online trades.
CoValue is a cloud-based app and enables users to: Make Valuations of Companies based on Discounted Cash Flow (DCF) Model and determine their Intrinsic Value.
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