Overvalued stocks

Screening Filters & Rationale

1. Market Cap ≥ $10 billion:

   • Purpose: Focus on large-cap stocks for stability and market influence.
   • Rationale: Large-cap stocks are more likely to exhibit overvaluation due to high investor demand and market attention.

2. High Beta:

   • Purpose: Identify stocks with higher volatility and risk.
   • Rationale: Overvalued stocks often exhibit high beta, reflecting speculative investor behavior and price swings.

3. P/E Ratio (TTM) ≥ 30:

   • Purpose: Highlight stocks with high price-to-earnings ratios.
   • Rationale: A P/E ratio above 30 suggests the stock may be priced excessively relative to its earnings.

4. P/S Ratio ≥ 10:

   • Purpose: Focus on stocks with high price-to-sales ratios.
   • Rationale: A P/S ratio above 10 indicates the stock price is significantly higher than its revenue, signaling potential overvaluation.

5. P/B Ratio ≥ 5:

   • Purpose: Identify stocks with high price-to-book ratios.
   • Rationale: A P/B ratio above 5 suggests the stock is trading at a premium compared to its book value, often a sign of overvaluation.