Peter Lynch Style (PEG < 1)
Peter Lynch's famous PEG ratio — find companies where PE is less than earnings growth rate. Growth investors' definition of fair value.
Screener.in Query
Copy and paste this directly into Screener.in
Price to Earning / Profit growth 3Years < 1 AND
Profit growth 3Years > 20 AND
Debt to equity < 0.5 AND
Market Capitalization > 200 AND
Return on equity > 18 AND
OPM > 15Step: Copy the query above → Open Screener.in → New Screen → Paste in the query box → Run
What It Finds
Companies where PE ratio divided by 3-year profit growth rate is below 1 — paying less than 1x for each unit of growth.
Why It Works
Peter Lynch said a PE below the growth rate is a potential buy. PEG < 1 means you're getting the growth cheap. This screen finds exactly those situations in Indian markets.
Best For
Best Market Conditions
Things to Watch Out For
- PEG uses historical growth, which may not repeat
- 3-year growth can be distorted by base effects (COVID years)
- Works best for companies with steady, predictable growth — not cyclicals
After Running the Screen
- 1Check each company's annual report and latest quarterly results.
- 2Verify the current valuation is reasonable — not just passing the screen.
- 3Look for insider ownership and promoter pledge levels.
- 4Always invest only what you can afford to hold for 3+ years.
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.
Related Screens
100% Profit Growth Under PE 20
Companies that doubled profits over both three and five years, still trading under PE 20 with a PEG below 1 — extreme growth the market has not yet repriced.
Undervalued Quality Stocks
Low PE, high ROE, growing revenue and low debt — the classic quality-at-a-discount combination every value investor looks for.
Low PE + High Earnings Growth
Stocks with PE below 15 but profit growth above 15% — the market hasn't yet priced in the earnings momentum.
Disclaimer: These screens are for educational and research purposes only. Results are based on historical financial data and do not constitute investment advice. Past screen performance does not predict future returns. Always verify data on BSE/NSE and consult a SEBI-registered investment advisor before investing.