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Valuation2 live · 4 coming soon

Valuation Screeners

Is the price right? These screeners compare NSE stocks against estimated fair value to surface bargains and overheated names. Dedicated PE, PB, PEG and EV/EBITDA filters are coming soon — for now, start with the composite overvalued and undervalued lists below.

Coming soon

PE Ratio Filter

Low vs. industry, historical & forward PE

PB Ratio Filter

Price-to-Book vs. peers

PEG Ratio Filter

Growth-adjusted PE for fair pricing

EV / EBITDA Filter

Enterprise-value multiple for capital-heavy names

PE, PB, PEG, fair value

What does "undervalued" really mean?

An NSE stock is undervalued when its market price sits below an estimate of intrinsic value — typically below historical PE bands, below industry-average PE, or below a growth-adjusted fair-value model. The Undervalued list on this hub blends several methods (PE, PB, PEG, growth-adjusted DCF) so a stock has to look cheap across multiple lenses before it appears. The Overvalued list is the inverse — useful for spotting froth, short candidates, or stocks to rotate out of as a position grows past fair value.

PE vs PB vs PEG — which to use

PE (Price / Earnings) is the default for stable, profitable businesses. A PE of 20 means investors are paying ₹20 today for ₹1 of annual earnings. Use it for FMCG, banks, large-cap IT — businesses with predictable earnings.

PB (Price / Book) is the right ratio for asset-heavy businesses where book value approximates replacement cost — banks, financials, utilities, capital-goods. Buffett famously bought banks at PB < 1.

PEG (PE / Earnings Growth) is for growth stocks. A PEG below 1 suggests the price hasn’t caught up to the growth rate. Tech and consumer growth names should be valued on PEG, not raw PE — a PE of 60 on a company growing 40% YoY can still be cheap.

EV/EBITDA strips out capital structure differences — use when comparing companies with very different debt loads.

The value-trap warning

The hardest lesson in value investing: cheap can stay cheap, or get cheaper. A stock at 5x PE may be a screaming bargain — or may be pricing in a known earnings collapse you don’t yet see. Always cross-check Undervalued candidates against the Quality Scorecard. A 7+ Quality Scorecard + Undervalued combination historically outperforms either filter alone on Indian markets. Avoid the inverse — high Undervalued score with sub-5 Quality Scorecard is the textbook value trap.

How to use the valuation screener

  1. 1Open the Undervalued list and immediately add a Quality Scorecard filter (≥ 7) to remove value traps.
  2. 2Sort the filtered list by your preferred ratio — PE for stable businesses, PB for banks/financials, PEG for growth names.
  3. 3For each candidate, check the 5-year PE chart on /stocks/[symbol] — is the current PE below its own historical range, or just below the broader market median?
  4. 4Verify the recent earnings trajectory — falling profits make any historical PE chart look artificially cheap.
  5. 5Use the Overvalued list to flag positions in your portfolio that have grown past fair value and may need rebalancing.

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