Strategy Guide

NSE Value Picks Screener: Combine PE, PB, and Dividend Yield for Undervalued Stocks

Discover how to combine PE, PB, and dividend yield to identify undervalued NSE stocks. This guide walks you through the value picks screener NSE with actionable thresholds and entry rules.

Strategy Guide — Evergreen guide for NSE traders. For educational purposes only, not financial advice.

The value picks screener NSE on QUANTSCASE helps traders uncover fundamentally undervalued stocks by combining three core metrics: low PE, low PB, and a healthy dividend yield. By screening for these criteria together, you can avoid value traps and focus on stocks with genuine margin of safety.

15
PE Threshold (Max)
1.5
PB Threshold (Max)
2%
Dividend Yield (Min)
50+
NSE Stocks Passing

Why Combining PE, PB, and Dividend Yield Matters for Value Investing

A low PE alone can be misleading if the company has high debt or poor earnings quality. Pairing it with a low PB ratio ensures you are not overpaying for net assets, while a minimum dividend yield confirms that management is returning cash to shareholders. This triple-filter approach is the backbone of the techno-fundamental CANSLIM strategy adapted for Indian markets.

For example, a stock like Coal India (PE ~8, PB ~1.2, yield ~5%) passes all three filters, while a high-growth stock with no dividend and inflated PB would be excluded. This method reduces downside risk and improves the probability of mean reversion gains.

📌 Key Insight
Stocks with PE < 15, PB < 1.5, and dividend yield > 2% historically outperform the Nifty 50 by 3-5% annually over 3-year holding periods.

How to Use the Value Picks Screener NSE on QUANTSCASE

1
Set PE Filter — Enter a maximum PE of 15 to exclude overvalued growth stocks. Use trailing twelve months (TTM) earnings.
2
Set PB Filter — Enter a maximum PB of 1.5 to ensure you are not paying more than 1.5 times book value per share.
3
Set Dividend Yield — Enter a minimum dividend yield of 2% to confirm cash returns. Avoid stocks with yields above 8% as they may signal distress.
4
Run the Screener — Click 'Apply' to see the filtered list. Use the Fundamental Value Picks screener to automatically apply these thresholds.
5
Verify with Fundamentals — Check debt-to-equity below 1 and positive free cash flow for the last 3 years to avoid value traps.
💡 Pro Tip
Sort the results by dividend yield descending to find the most shareholder-friendly companies first, then cross-check with 5-year average PE to ensure the low PE is not due to a temporary earnings spike.

Key Indicators for the Value Picks Screener NSE

IndicatorThresholdSignalWhy It Matters
PE Ratio (TTM)< 15✅ BullishIndicates the stock is cheap relative to earnings.
Price to Book (PB)< 1.5✅ BullishShows the stock is trading below or near its book value.
Dividend Yield2% – 8%⚡ WatchHealthy yield confirms cash returns; too high may signal distress.
Debt to Equity> 1.0❌ BearishHigh debt increases risk; avoid if above 1.0.
✅ Value Picks Entry Checklist
PE (TTM) is below 15
PB ratio is below 1.5
Dividend yield is at least 2%
Debt-to-equity is below 1.0
Avoid stocks with negative free cash flow for 3 consecutive years
⚠️ Common Mistake
A low PE and PB can be a value trap if the company is in a declining industry or has poor governance. Always check the latest quarterly results and management commentary before investing.

Try It on QUANTSCASE: Value Picks Screener NSE

Use the Fundamental Value Picks screener to instantly filter NSE stocks by PE, PB, and dividend yield. You can also explore related screeners for deeper analysis.

Fundamental Value Picks →
Combines PE, PB, and dividend yield with adjustable thresholds.
Techno-Fundamental CANSLIM →
Adds earnings momentum and technical strength to value filters.

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This guide is for educational purposes only and does not constitute investment advice. Always perform your own due diligence before trading.