Value Investing Stock Screener

Explore investment opportunities with our Value Stock Screener, inspired by Warren Buffett and Peter Lynch's value investing principles. Analyze over 25,000 stocks globally to find undervalued companies with strong growth potential.

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Warren Buffett's Value Investing Philosophy

Buffett, known for his value investing philosophy, focuses on businesses with strong fundamentals and long-term growth potential. He emphasizes:

Strong Business Models: Buffett prefers businesses with a lasting competitive advantage, such as a strong brand, unique technology, or market dominance. This “economic moat” helps sustain long-term profitability and fend off competition.
Financial Health: He looks for companies with high returns on capital, low debt levels, and consistent profitability, indicating efficient capital use, financial stability, and resilience against market fluctuations.
Management Quality: Buffett values leadership that is not only skilled but also demonstrates integrity and prioritizes shareholder interests, ensuring the bussiness’s long-term success aligns with shareholder value.
Fair Valuation: Focused on acquiring stocks below their intrinsic value, Buffett’s approach is to thoroughly analyze a business’s worth and invest when prices are favorable, emphasizing patience and a margin of safety.

Peter Lynch's Value Investing Philosophy

Lynch, famous for his management of the Magellan Fund, advocates for investing in what you know and understand. His key points include:

Know What You Own: Lynch strongly advocated for investing in companies that you understand or have personal experience with. He believed that the best stock tips can come from everyday experiences and observations.
Growth at a Reasonable Price (GARP): Focuses on businesses with sustainable growth prospects but not overpriced.
Business Quality: Lynch emphasized the importance of sustainable earnings growth, financial prudence (especially low debt), and strong, shareholder-focused management. He viewed these factors collectively as indicators of a business’s overall quality and potential for long-term success.
The Ten-Bagger Potential: Lynch was famous for looking for “ten-baggers” – investments that would grow tenfold. He believed in holding these successful investments for the long term to maximize gains.

Key Metrics in the Value Stock Screener

1. Revenue Growth

Revenue Growth measures a business’s ability to increase sales over time, reflecting its market expansion and operational success. It’s considered a vital indicator by investors like Warren Buffett and Peter Lynch for identifying companies with long-term prosperity potential. Consistent revenue growth (over 5% per annum) suggests a business’s ability to maintain a competitive edge and meet market demand effectively. This metric, especially when combined with high EPS growth, is crucial in value investing as it often leads to increased profitability and shareholder value.

2. EPS (Earnings per Share) Growth

EPS Growth measures how much a business’s net profits have increased over time, on a per-share basis. A consistent EPS growth above 10% per annum over a decade indicates a strongly growing business. Both Buffett and Lynch see consistently high EPS growth as a sign of a business’s enduring profitability and potential for long-term success. Buffett, in particular, views this as evidence of a business’s ability to increase its fair value (intrinsic value) over time.

3. EPS Growth Stability

This metric assesses the consistency of a business’s earnings growth. High stability indicates that the business has reliably grown its earnings, showing resilience against market fluctuations. Stability in earnings growth is crucial for both Buffett and Lynch. It demonstrates a business’s ability to perform well even in challenging economic conditions, aligning with their focus on long-term investment.

4. ROIC (Return on Invested Capital)

ROIC measures how effectively a business uses its invested capital to generate profits. A high ROIC (over 15% per annum) suggests that the business is making good use of its investments. High ROIC is a key metric for Buffett as it indicates efficient capital utilization by management and a strong competitive advantage. Lynch also values high ROIC as it often accompanies businesses with sustainable growth.

5. Cash Conversation Ratio (Free Cash Flow / Net Profit)

The Cash Conversion Ratio gauges a business’s efficiency in converting its net profits into free cash flow, which indicates the actual cash generated from operations. A high ratio (over 80%) demonstrates that the business isn’t just profitable on paper but also excels in cash management, reinforcing its ability to support growth, fund operations, and return value to shareholders. For Buffett, this ratio suggests a business’s financial stability, highlighting prudent management that doesn’t rely heavily on debt. Lynch views a high Cash Conversion Ratio as a sign of operational strength and resilience, indicating that a business can endure market fluctuations while still providing growth potential.

6. Interest Coverage Ratio

This ratio measures a business’s ability to pay off its interest expenses with its earnings before interest and taxes (EBIT). Both investors use this ratio to gauge a business’s debt management. A high ratio (>10) indicates that the business is not overly burdened by debt and can comfortably meet its financial obligations.

7. PEG (Price Earnings to Growth) Ratio

The PEG ratio assesses a stock’s Price / Earnings (P/E) ratio relative to its earnings growth rate. A PEG ratio below 1 suggests that a stock may be undervalued. Lynch often preferred the PEG ratio over traditional metrics like P/E ratio because it helps identify stocks that offer growth potential without being overpriced. Buffett also recognizes the value of this ratio.

8. Discount to Fair Value

A critical aspect of Buffett’s philosophy is the calculation of fair value (intrinsic value). Buffett places a strong emphasis on determining the fair value of a business based on its fundamentals and then comparing it to its market price. Our Value Stock Screener estimates the Discount to Fair Value of the stock based on two methodologies: one using historical free cash flow growth and the other using historical net profit growth. Click here for more information on the Discount to Fair Value Calculation.

It should also be noted that Buffett and Lynch place significant importance on qualitative aspects of a business, such as its business model, competitive advantage, and management quality. These are difficult to quantify in a screener, although may be reflected to some degree in the ROIC and ROE metrics. It is important to recognize that value investing decisions should not be made solely based on quantitative metrics.

How to use the Value Stock Screener

Value Investing Stock Screener Demo: Find Undervalued Stocks Quickly

Watch this video on YouTube

Click on the video and expand to full screen to view a demo of the Value Stock Screener.

Detailed instructions are also provided below the dashboard.

If you need a refresher on any of the financial metrics used, our Stock Investing Glossary is just a click away.

Our Value Stock Screener has the default settings below. You may adjust these settings in the screener to suit your specific criteria.

Screens using growth rates over the last 10 years. There is the option to screen using growth rates over the last 5 years, if you wish to focus more on recent performance.
Exchange Region, Sector, Industry & Market Capitalization is ‘All’.
Revenue Growth over the selected period > 5% p.a.
EPS (Earnings per Share) Growth over the selected period > 10% p.a.
EPS Growth Stability for last 10 years is either: Very High, High or Medium. Each category represents about 20% of all stocks.
ROIC (Return on Invested Capital) over the selected period > 15% p.a.
Cash Conversion Ratio (FCF / Net Profit) over the selected period > 80%
Interest Coverage Ratio > 10
PEG (Price Earnings to Growth) Ratio < 1
Discount to Fair Value using historical free cash flow growth (growth capped at 20% p.a., discount rate = 12%, terminal P/FCF = 15) > 30%
Discount to Fair Value using historical net profit growth (growth capped at 20% p.a., discount rate = 12%, terminal P/E = 15) > 30%

To better understand the meaning of these financial metrics, refer to our Stock Investing Glossary.

Value Stock Screener Dashboard

Our data is refreshed every three hours to ensure you have up-to-date information for your investment decisions. Bookmark this page and check in regularly to identify the latest opportunities. If you wish to screen on more metrics or access the data in a spreadsheet, you may use our ‘All-in-One Excel Screener‘.

Please suggest improvements to this dashboard by providing feedback in the form on the Contact page.

Detailed instructions for the Value Stock Screener?

By default, stocks for exchanges in ‘All’ regions are displayed initially. You may select a specific region using the ‘Exchange Region’ drop down list. Note that clicking on ‘Select all’ in the drop down list can also deselect all.
Select from the dropdown menus and move the circular sliders to apply your desired criteria.
By default, the stocks are sorted in descending order of market capitalisation (USD). However you may sort the stocks based on another metric by clicking on the relevant column header.
All metrics in the table are current or based on trailing twelve months (ttm).
Obtain more information for a particular business by selecting Stock Analysis in the menu.
Estimate the fair value of a particular business by selecting Intrinsic Value Calculator in the menu.
The dashboard is best viewed on a desktop device. For the best mobile phone experience, view the dashboard using landscape orientation.

The accuracy of the data in this website is not guaranteed and it is highly recommended that you perform your own due diligence before making an investment decision by directly reviewing the business’s annual report and accompanying financial statements.

Why use a Value Stock Screener?

Are you tired of spending countless hours sifting through stocks trying to find the perfect investment opportunity? Look no further! An online stock screener offers a range of benefits to simplify your stock search:

Time-Saving Efficiency:

No more tedious, time-draining research! A stock screener is engineered to quickly filter through the massive stock universe and pinpoint only those that align with your investment criteria. This means you can save precious time and focus your energy on exploring the most promising opportunities. You’ll be able to quickly identify the stocks worth your attention, rather than wasting your time on those that don’t fit the bill.

Customizable Criteria:

Your investment approach is unique, and your stock search should reflect that. With a value investing stock screener, you can tailor your criteria to perfectly match your goals and preferences. Choose to screen for stocks based on factors such as market capitalization, price/earnings ratio, return on equity and much more. This way, you can uncover stocks that specifically suit your needs, increasing your chances of success.

Comparative Analysis:

Get the inside scoop on how your preferred stock stacks up against its competition with the comparative analysis feature of a stock screener. Compare stock metrics and spot undervalued opportunities relative to peers, giving you an edge in the market. With this information, you can make informed decisions and potentially discover hidden investment opportunities.

Global Accessibility:

With the convenience of an online stock screener, you have the power to access market information and investment opportunities from anywhere in the world. Whether you’re at home, in the office, or on-the-go, you can stay up-to-date on the latest stock market developments and never miss a beat. With the ability to stay on top of your game from anywhere, you’ll never miss an opportunity to make a smart investment.

Is stock screener free?

Yes, discover endless investment opportunities with this free stock screener! Use it as often as you like, and help us improve the tool even further with your valuable feedback. Unlike other online stock screeners that limit access to international stocks, this one is completely free. Our goal is to empower every retail investor to make informed investment decisions, and this screener is just the beginning.

Further information about value investing

Investopedia’s Value Investing article is an excellent resource for those new to stock investing and interested in understanding the basics of value investing. This article covers the fundamentals of value investing and offers insights into various investment strategies.

Stock Investor IQ

Value Stock Screener