Finding undervalued stocks nse screener pe pb is a core strategy for long-term investors. The QUANTSCASE Fundamental Value Picks Screener helps you identify NSE stocks trading below their intrinsic worth using proven valuation metrics.

PE Threshold

1.5

PB Threshold

Dividend Yield Min

10%

Debt-to-Equity Max

Why PE and PB Matter for Value Investing

The Price-to-Earnings (PE) ratio compares a stock's price to its earnings per share, indicating how much investors pay for each rupee of profit. A low PE (below 15) often signals an undervalued stock. The Price-to-Book (PB) ratio compares market price to book value per share; a PB under 1.5 suggests the stock is trading below its net asset value. Together, these metrics form the foundation of value screening. For a broader context, explore our market breadth guide to see how value stocks behave in different market phases.

Combining PE and PB filters reduces the risk of catching value traps — stocks that appear cheap but have weak fundamentals. For example, a stock with PE 12 and PB 0.8 in the Nifty 500 universe often indicates a genuine bargain. Always verify earnings stability and debt levels before investing.

📌 Key Insight
Stocks with PE below 15 and PB below 1.5 have historically outperformed the Nifty 50 by 3-5% annually over 10-year periods.

How to Use the NSE Value Picks Screener

Set PE Range — Filter PE between 5 and 15 to exclude extremely low (distressed) and high (overvalued) stocks.

Set PB Range — Set PB between 0.5 and 1.5 to capture stocks trading near or below book value.

Add Dividend Yield — Minimum 2% dividend yield ensures the company returns cash to shareholders.

Apply Debt Filter — Use the Fundamental Value Picks Screener to set debt-to-equity below 1.0, avoiding high-risk leveraged firms.

Review Results — Sort by PE ascending and check earnings growth over 3 years. Avoid stocks with declining profits.

💡 Pro Tip
Combine PE and PB with a minimum 5-year dividend history to filter out cyclical value traps.

Key Indicators for Value Screening

Indicator	Threshold	Signal	Why It Matters
PE Ratio	5-15	✅ Bullish	Indicates stock is undervalued relative to earnings.
PB Ratio	0.5-1.5	✅ Bullish	Shows stock trades near or below book value.
Dividend Yield	>2%	✅ Bullish	Signals consistent cash return to shareholders.
Debt-to-Equity	<1.0	⚡ Watch	High debt can mask financial distress.
Earnings Growth (3Y)	>10%	✅ Bullish	Confirms sustainable profitability.
ROE	>12%	✅ Bullish	Indicates efficient use of equity capital.
PEG Ratio	<1.0	❌ Bearish	When PE is low but growth is negative, avoid.