The PE PB ratio screener NSE is a powerful tool for identifying undervalued stocks on the National Stock Exchange. By combining the price-to-earnings (P/E) and price-to-book (P/B) ratios, traders can filter companies trading below their intrinsic value. For a broader view of market health, check our market breadth guide for Indian stocks.

15-25

Ideal P/E Range

< 1.5

Ideal P/B Range

> 15%

ROE Threshold

< 0.5

Debt-to-Equity Max

Why P/E and P/B Ratios Matter for NSE Stock Selection

The P/E ratio tells you how much investors are willing to pay per rupee of earnings, while the P/B ratio compares a stock's market value to its book value. Together, they help identify value traps and genuine bargains. For momentum-based confirmation, explore our technical screening guide using RSI and MACD.

A low P/E may indicate an undervalued stock, but it could also signal declining earnings. Similarly, a low P/B might mean the company's assets are undervalued or that it has poor return on equity. Combining both ratios with a minimum ROE of 15% and debt-to-equity below 0.5 improves the quality of your picks.

📌 Key Insight
Stocks with P/E between 15-25 and P/B below 1.5, combined with ROE > 15%, have historically outperformed the Nifty 50 by 3-5% annually.

How to Use the PE PB Ratio Screener on QUANTSCASE

Set P/E Range — Enter a P/E range of 15 to 25 to filter out extremely overvalued or distressed stocks.

Set P/B Range — Set P/B below 1.5 to focus on stocks trading near or below their book value.

Add ROE Filter — Apply a minimum ROE of 15% to ensure the company generates strong returns on equity.

Use the Value Picks Screener — Open the Fundamental Value Picks screener to automatically apply these filters and get a curated list.

Review and Confirm — Cross-check results with debt-to-equity (< 0.5) and earnings growth trends before entering a trade.

💡 Pro Tip
For cyclical sectors like banking and metals, use a P/B threshold below 1.0 instead of 1.5, as these industries have higher asset intensity.

Key Indicators for the PE PB Ratio Screen

Indicator	Threshold	Signal	Why It Matters
P/E Ratio	15–25	✅ Bullish	Indicates reasonable valuation relative to earnings.
P/B Ratio	< 1.5	✅ Bullish	Stock is trading near or below its book value.
ROE	> 15%	✅ Bullish	Company efficiently generates profits from equity.
Debt-to-Equity	> 0.5	❌ Bearish	High debt increases financial risk and may distort book value.

✅ Entry Checklist for PE PB Ratio Screen

✓P/E between 15 and 25

✓P/B below 1.5

✓ROE above 15%

✓Debt-to-equity below 0.5

✗Avoid stocks with negative earnings or book value

⚠️ Common Mistake
A common mistake is using P/E alone — a low P/E can be a value trap if earnings are declining. Always pair with P/B and ROE for a complete picture.

Try It on QUANTSCASE

Use our pre-built screeners to instantly find NSE stocks matching these criteria. Start with the Fundamental Value Picks screener for a ready-made list.

Fundamental Value Picks →

Filters stocks with low P/E, low P/B, and high ROE.

Techno-Fundamental CANSLIM →

Combines value metrics with technical momentum.

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This guide is for educational purposes only and does not constitute financial advice.