Stock Valuation — PE, PB Analysis
Screen stocks by key valuation metrics like P/E ratio, P/B ratio, and return on equity on NSE and BSE. This tool helps value investors identify stocks that may be undervalued relative to their earnings and book value. Whether you follow a Warren Buffett style of value investing or simply want to avoid overpaying for stocks, this screener gives you the data you need. Compare valuations across sectors, filter by market cap, and combine with our shareholding data to build a complete investment thesis for any stock.
Frequently Asked Questions
What is stock valuation?
Stock valuation is the process of determining whether a stock is fairly priced, overvalued, or undervalued relative to its fundamentals. Common valuation metrics include the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and return on equity (ROE). These ratios help you compare companies across sectors and identify potential investment opportunities.
What does a low P/E ratio indicate?
A low P/E ratio means you are paying less for each rupee of the company's earnings, which could indicate the stock is undervalued. However, a low P/E can also reflect slow growth expectations, industry-specific factors, or temporary earnings spikes. Always compare a stock's P/E to its own historical average and to peers in the same sector for meaningful context.
How do I find undervalued stocks using this screener?
Start by filtering for stocks with a P/E ratio below the sector average and a P/B ratio near or below 1. Then layer in profitability — look for companies with ROE above 15% and consistent earnings growth over the past three years. The combination of low valuation and strong profitability often points to genuinely undervalued opportunities rather than value traps.