The PEG ratio screener NSE is a powerful tool for traders who want growth without overpaying. It divides a stock's P/E ratio by its earnings growth rate, giving a fair value signal. Start by screening for PEG between 0.5 and 1.5, then confirm with momentum using our technical screening guide.

0.5–1.5

Ideal PEG Range

15–25%

Earnings Growth Target

< 1.0

Undervalued PEG

> 2.0

Avoid Overvaluation

Why PEG Ratio Matters for NSE Growth Stocks

The PEG ratio refines the P/E by factoring in future earnings growth, making it essential for growth investors. A PEG below 1 suggests the stock is undervalued relative to its growth, while above 2 indicates overpricing. For Indian markets, combining PEG with momentum can filter high-quality breakouts. See how CANSLIM principles integrate PEG for robust stock selection.

Using PEG alone can mislead if growth rates are inconsistent. Always verify that earnings growth is sustainable over 3-5 years, not just one quarter. For NSE stocks, sectors like IT and pharma often show PEG below 1.5 during corrections, offering entry points before momentum resumes.

📌 Key Insight
A PEG ratio below 1.0 with accelerating quarterly earnings is a strong buy signal, but always confirm with price action and volume.

How to Use the PEG Ratio Screener on QUANTSCASE

Set Your PEG Range — Start with PEG between 0.5 and 1.5. This filters out overvalued growth stocks while keeping quality names.

Add Earnings Growth Filter — Require 3-year EPS CAGR of at least 15%. This ensures the growth rate used in PEG is reliable.

Check Valuation Consistency — Compare PEG with sector averages. For example, IT stocks often trade at PEG 1.2-1.8, while FMCG may be higher.

Confirm with Momentum — Use the Strong Trend screener to ensure the stock is in an uptrend, avoiding falling knives.

Review Fundamentals — Open the Fundamental Value Picks screener to double-check debt levels and return on equity.

💡 Pro Tip
For NSE mid-caps, a PEG below 0.8 with rising institutional holding often precedes a re-rating. Screen monthly to catch early moves.

Key Indicators for PEG Screening

Indicator	Threshold	Signal	Why It Matters
PEG Ratio	0.5 – 1.5	✅ Bullish	Indicates growth is fairly priced or undervalued.
PEG Ratio	< 0.5	⚡ Watch	May signal extremely low growth expectations or cyclical risk.
PEG Ratio	1.5 – 2.0	⚡ Watch	Growth is priced in; wait for a pullback.
PEG Ratio	> 2.0	❌ Bearish	Stock is overvalued relative to growth; avoid.

✅ PEG Ratio Entry Checklist

✓PEG ratio between 0.5 and 1.5

✓3-year EPS CAGR above 15%

✓Stock trading above 50-day moving average

✓Volume is at least 1.5x the 30-day average on breakout

✗Avoid PEG below 0.5 with declining earnings

⚠️ Common Mistake
A common mistake is using a one-year forward growth rate, which can be manipulated. Always use 3-5 year historical growth for stability.

Try It on QUANTSCASE

Combine the PEG ratio screener NSE with our momentum and fundamental tools. Start with the Fundamental Screener to filter by PEG, then add technical filters.

Fund Value Picks →

Finds undervalued stocks with PEG < 1 and strong ROE.

CANSLIM Screener →

Combines PEG with momentum and institutional buying.

Strong Trend →

Confirms uptrend and price strength after PEG screening.

Start screening NSE stocks with PEG under 1.5

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