5 Screens

Value Screens

Undervalued stocks trading below their intrinsic worth. Find quality businesses the market is temporarily mispricing.

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Beginner

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Intermediate

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Advanced

About Value Investing

Value investing is buying more than you pay for — finding genuinely good businesses temporarily trading at a discount to their intrinsic worth. In Indian markets, where retail speculation frequently inflates popular stocks, real value quietly compounds in neglected corners of the market.

The core metrics: Price-to-Earnings (PE) below 10–15 for quality businesses with growing profits signals underpricing. But low PE alone is not value — it can be a trap. A stock is cheap for a reason: slowing growth, management issues, cyclical peak earnings, or structural industry decline. The screens here add quality filters (ROE above 15%, low debt, positive profit growth) to separate genuine value from value traps.

Peter Lynch's PEG ratio (PE divided by profit growth rate) below 1 is one of the most reliable value signals: it means you're paying less per rupee of growth than the growth rate warrants. A company growing profits at 25% annually but trading at PE of 20 has a PEG of 0.8 — mathematically cheap relative to its growth.

Deep value (PE below 10) requires the most patience and conviction. These stocks often stay 'cheap' for 1–3 years before the market recognises the mispricing. The payoff when re-rating occurs can be enormous — a PE moving from 8 to 15 alone doubles the stock even without earnings growth.

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