How to use Screener to find undervalued stocks?

Short Answer

Screener offers a set of pre-existing filters or screens which you can use to filter stocks. It also provides the feature to create your own screen to filter out stocks with your own defined parameters. Using both of these features you can find undervalued stocks by adding certain parameters such as PE, RoCE, etc

Detailed Answer

What is Screener?

Screener is a stock filtering and fundamental analysis tool that enables investors and traders to find the best stocks for investment as well as trading purposes. You can use Screener to filter any stock from the Indian markets.

How to use Screener?

Screener provides you with two different sets of features. The platform has many pre-existing filters and screeners that can be used to find stocks. These filters contain numerous parameters within them that can be used to obtain the best-suited stocks.

In the next part, you can develop your own screener/filter using which you can screen stocks. You can use any number of parameters and filters to find out the stocks that match your parameters. There are also some other tools available on the platform that can be used to get better results.

To make your own Screen, you don’t need to know coding or any other programming language. You can simply search and select your required parameters from the drop-down menu and add the numerical values, based on which you want to find the stocks.

How to use Screener to find Undervalued stocks?

To find undervalued stocks there are two methods that you can follow. In the first place, you can select the existing screens on Screener. The second method is to make your own screen by using the necessary parameters to filter out the best stocks that fulfill the given criteria.

1. Existing screens:

Screener has numerous types of screeners that can help you to find undervalued stocks. Some of the screeners are:

  • High Growth High RoE and low PE.
  • Value stocks
  • Peter Lynch Stock Screener
  • Benjamin Gram and Warren Buffet screener

These are some of the screens that are already present for you to use. You can use these filters to shortlist a list of undervalued stocks.

2. Creating your own screener:

To find undervalued stocks, you can create your own screener in ‘Create New Screen’ icon. Some of the metrics that you have to use are.

  • Low Price to Earnings (PE), less than 15
  • High Growth, more than
  • Return on Capital employed (ROCE) more than 22%
  • Low Debt to Equity, less than 1.

These are some of the metrics that can be used to create your own filter to discover undervalued companies. You can alter the numerical according to your needs to get better results.

Tagged With: Stock ScreenerFundamental AnalysisEquity ResearchStock MarketUndervalued Stocks
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Related FAQs

Is Screener an useful stock screening tool?

Screener is a stock screening and technical analysis platform that can be used to filter stocks from the Indian stock markets. Screener is a useful platform as it has many tools and features that you can use to find the best stocks according to your parameters. Know about the features and tools in detail here.

How to find good companies as there are many publicly listed companies in the Indian stock market?

To find good companies out of the thousand companies listen on the Indian stock exchange, you can filter stocks on the basis of certain parameters such as Market cap, Debt to Equity, Dividend payouts, Revenue and Profits growth, etc. You can easily use an online stock screener to find out these stocks.

How to use your own filters to screen stocks?

Screenr is a stock analytics platform that is useful to conduct detailed fundamental analysis and of stocks. You can use the pre-existing screens on the platform or create your own to filter stocks. You can easily follow some simple steps to create your own screens for filtering stocks.

Where do I find stock related information?

Fundamental analysis is an important part of stock investing. You can either refer to the company’s quarterly reports for the data or use any fundamental analysis and stock screening platform to analyse the data. Using a stock screening platform makes the job much easier as you get all the necessary data curated in one single place.

Is the Premium Plan of Screener useful?

Screener is a comprehensive Stock Screening and Fundamental Analysis tool providing platform that provides many useful tools for the following. Screener provides two different plans that you can select from. They are the "Free Plan" and "Premium Plan". Both of these plans have their own features and advantages. Know more about these plans and find out if the Premium Plan is for you.

How to use Screener to make your own screens?

Screener is a stock screening and fundamental analysis platform using which you can filter stocks according to any parameters. You can choose any screen from the numerous screens present on the platform or create your own filter or screen to filter out stocks as per your parameters. You can create your own screen by following some simple steps.

How much time should I spend researching stocks?

Stock researching is a not a lengthy process but beginners can easily take up anywhere between 2 to 4 hours to complete the entire process. The task can be performed faster with the help of any stock screening and fundamental analysis platforms.

Can you analyze stocks of any country using CapitalCube?

CapitalCube is a global stock analysis platform where you can analyze any stock from any country your want. The platform provides numerous criteria for you to choose and analyze stocks. Not all the features on the platform are free hence in order to perform certain actions you will have to subscribe to a plan offered by CapitalCube.

How to use Investello effectively?

Using Investello you can scan the Indian stock market to get the best stocks that check all your requirements. Investello has a host of special features like 'Stock Comparison', 'Popular Investment Strategies', 'Fundamental Screener', and much more. Using these features you can make your investment and stock screening process more effective and get better results.

What is the cost of using CapitalCube platform?

CapitalCube provides three different plans for you to choose from including a free plan. The Basic Plan is a free plan that offers only 3-4 features. The Premium plan is the best plan for investors/traders which provides most of the features. Know more about the details and pricing of these plans.